The Creative Economy
April 1, 2009
By Roger P. Day
The broad definition of the Creative Economy includes not only the painters, potters and musicians we might expect, but also web and graphic designers, textile designers, architects and other people who use their visual, aesthetic and inspirational skills to create. It includes non-profits, to be sure, but also commercial and individual enterprises.
The basic model supported by the New England Foundation for the Arts defines the Creative Economy as being composed of three overlapping groupings: a creative cluster of businesses and organizations; a creative workforce of people; and places - creative communities. The interaction of these three generates a particularly vibrant Creative Economy. Specifically, it fosters increased economic activity by those engaged in the production and distribution of cultural goods and services.
The definition of the Creative Economy has changed over time. As recently as 2002, the focus was on a conventional view of cultural activity (the Artists Guild, the Falmouth Theater Guild, the Falmouth Historical Society). The definition today incorporates intellectual property (not high tech) and adds glassware and jewelry manufacturing, bookstores and occupations like editors, librarians, reporters and theatrical make-up artists. It includes over 80 categories of occupations and businesses.
Whether broadly or more narrowly defined, the underlying focus is the contribution these individuals and organizations make to the quality of life and to economic activity, by producing and distributing cultural goods and services.
In Massachusetts, the Creative Economy is a powerful economic force. It employs more than 132,000 people, over 4% of the workforce (the MFA is the third largest private employer in Boston). The top five occupations are: designers; architects; writers and scholars; visual artists; and musicians.
To bring this closer to home, The New England Foundation for the Arts estimates for Falmouth are:
- Cultural non-profits alone spend $4.2 million in Falmouth
- Indirect impact of non-profit spending is $1.7 million
- Induced impact of that spending is $1.1 million
Not so bad.
Sadly, ArtsFalmouth is not included on the list of non-profits, nor are the Falmouth Theater Guild, Woods Hole Theater Company, Salt Pond Area Sanctuaries and many others. So the numbers have room to grow.
For the skeptics among you, WHOI, MBL, WHRC are not on the list.
Unsurprisingly, members of the “cultural workforce” tend to be better educated than the total workforce average. Sadly, they earn $1,100 less than the average for the New England workforce as a whole.
One of the conclusions suggested by recent studies is that concentration of cultural organizations and workers tends to have a multiplier effect on activity and earnings. More is better. More also increases tourism, especially the “cultural tourist”, who generally is wealthier, better educated, stays longer, shops more and only comes into contact with the police to ask directions.
The implications for Falmouth and the Upper Cape seem clear.
We have seen a measurable increase in cultural activity in town over the past few years. Congratulations to you all.
Let’s keep it up; it is good for everyone.
To find out more about the creative economy and how you can help build a vibrant creative economy in Falmouth, MA check out The Creative Economy: A New Definition.
Roger P. Day is the treasurer for ArtsFalmouth Board of Directors and the chair of the Cape Cod Theatre Project Board of of Directors.
