WHAT IS THE CREATIVE ECONOMY? WHY DOES IT MATTER? Center for Arts Leadership University of Houston

1. WHAT IS THE CREATIVE ECONOMY?WHY DOES IT MATTER?Center for Arts LeadershipUniversity of Houston April 11, 2016 Christine Harris

2. Which is art; which is creative economy?

3. Comparing Creative Classifications Creative class (Richard Florida, 2002) –The size of the creative professional and knowledge worker labor force Creative placemaking (NEA, ArtPlace 2010) – An arts/culture-centric community and economic development strategy Creative economy (Mt. Auburn, 2001) – The measured economic value of the businesses and workers in creative enterprises and occupations

4. World Growth Industry United Nations Conference on Trade & Development Creative Economy Report 2013: • World trade of creative goods and services = $624 billion in 2011; doubling from 2002 • Annual growth rate = 9% • “One of the most dynamic sectors of the world economy”this decade • Reports produced 2008 and 2010

5. The Language Creative Economy – a new economic industry cluster based on the businesses and people who produce intellectually protected goods and services generated from aesthetic or cultural content Creative Enterprises – the set of business enterprises and their workers who make up the creative economy in a particular locale Creative Occupations – the workers whose jobs are producing/distributing a creative good or service in any type of business

6. Why Define and Measure as an Industry Cluster? Recognition of economic value of creative assets Integrating nonprofit and for profit Competition for differentiation (consumer, business) Move beyond ‘quality of life’ to ‘differentiation of place’ Community talent pipeline, inc. creative education

7. The Creative Economy The economic sector that employs culture and creativity to generate wealth and jobs through ideas, products or services. Organizations and individuals whose products and services originate in artistic, aesthetic or cultural content. Arts and culture organizations, independent creatives (graphic artist, painter, architect, etc), for profit creative businesses (printing, design, advertising, marketing, etc)

8. Measuring the Creative Economy NAICS: North American Industry Classification System codes (transitioned from SIC format) from the U.S. Census Bureau – business enterprises SOC: Standard Occupational Classification System codes from the U.S. Bureau of Labor Statistics – jobs O*NET: Mix of knowledge, skills and abilities which make up individual SOC occupations - US Dept of Labor

9. Creative Business Segments

10. Creative Occupations

11. Jobs in the Creative Economy Other Workers in Creative Enterprises (e.g. receptionist in architecture firm; accountant in orchestra) Creative Workers in Other Enterprises (e.g. product designer in manufacturer, architect in contractor) Creative Workers in Creative Enterprises (e.g. graphic designer in ad agency; actor in theatre company) Creative Enterprises Creative Occupations

12. Jobs in Houston’s Creative Economy 2011 = 146,625 2014 = 179,156 + 22% Other Workers in Creative Enterprises (e.g. receptionist in architecture firm; accountant in orchestra) 55,436 - 2011 72,552 - 2014 + 31% Creative Workers in Other Enterprises (e.g. product designer in manufacturer, architect in contractor) 55,442 - 2011 65,523 - 2014 + 18% Creative Workers in Creative Enterprises (e.g. graphic designer in ad agency; actor in theatre company) 35,747 - 2011 41,081 - 2014 +15% Creative Enterprises Creative Occupations This research was compiled and published by the Houston Arts Alliance

13. Why Communities Research Their Creative Economy • Define and measure what creative economy means to a community • Measure scale and value of creative enterprises and occupations • Understand creative talent pipeline • Increase in talent base and creative businesses offers new economic opportunities • Compare to other local industries

14. Jobs Wages Businesses

15. Other Related Information US Bureau of Economic Analysis with Arts and Culture Satellite Production Account – resulted in 4.3% contribution to GDP in 2012. Americans for the Arts – arts-related businesses comprised 3.9% of all businesses and 1.9% of all workers in America. Creativity now being included as a core competency skill for the American workforce – US Department of Labor, OECD 21st Century Skills and Competency Survey.

16. National Developments US Bureau of Economic Analysis developing Arts and Culture Satellite Production Account with the NEA – now working on local and regional accounts. NEA Creativity Connects – demonstrating and researching arts contribution to the creative ecosystem. June 2016 Creative World Summit, D.C. July 16-30, 2016 - includes World Summit on the creative economy and creative industries. National Creativity Network & Creative Economy Coalition

17. Implications for Creative Sector A different conversation – no one owns creativity Mixing for profit & nonprofit business models challenging Measuring economic value different from measuring economic impact For profit creative businesses often connect better with individual creatives than with non-profit organizations Rethink non-profit product offerings as ‘creative asset management’; every artist Opportunity for all to think beyond borders to work better synergistically

18. Implications For Communities Increased global competition for creative talent because these people and businesses can locate anywhere Increased demand to demonstrate commitment to a creative, innovative culture because ALL high functioning professional talent is drawn to living and working in a creative climate Impact on policies for arts education; critical component of ensuring a creative career path and talent pipeline Real, bottom line economic impact of strong creative economy

19. Transforming Cities Through Its Creative Economy Fostering entrepreneurial creative businesses - business development resources, loan programs Talent attraction - both creative talent and higher level professional talent who want to live in a creative, interesting and dynamic city Neighborhood development - the making of place through connecting artists and other creativesfor better neighborhoods and increased social wellbeing

20. Transforming Cities Through Its Creative Economy Collaborative working spaces - the synergy of new ideas and businesses by co-locating talent Increasing business competitiveness – better creative talent increases innovation and product differentiation across all businesses Quality of Life/Place – increased heart and soul, distinction

21. Questions Houston Has to Ask Itself Do we believe that creativity is a key differentiator for talent attraction, business development, and community engagement? If so, where does the creative ecosystem fit within overall metro development planning? If so, who will take the lead in facilitating a strategic plan for fostering a creative community – business, K-16 education, neighborhood development, etc.? Is there a ‘collective will’ to maximize Houston’s creative capital for evolving itself into a resilient new economy city ?

22. Thank you! christine@charrisconnect.com Christine@charrisconnect.com 414-379-1011