Economic Development and the Arts

I recently ran across two interesting articles on economic development and the arts, a topic dear to my heart. I spent many years in the local arts world, trying to emphasize the economic development component of the arts, so was happy to happen onto these articles

“Arts, Culture, and Economic Development,” (Economic Development Journal Winter 2009 8/1 5-13) focuses on what the authors (Steve Nivin and David Plettner) consider the next phase of economic development, the Creative Age (or, Conceptual Age or the Design Age.) The article focuses primarily on a recent study of San Antonio’s creative sector, and the City’s and community’s efforts to enhance the economic impact of this sector -- San Antonio’s top 10 creative occupations by employment registers a sizable economic impact that is comparable to other industries ($3, 375.5 million), employing 26,744 with a payroll of $1,000.1 million.

More interesting to me, however, is how Nivin and Plettner describe the work being done by creative people at each stage of economic development (a concept developed by Richard Florida in 2002) As innovation becomes more important to regional economic development, it is vital for regions to develop a culture that fosters the “creative activity of innovation.” Not only must we innovate, but the designs of our innovations must be aesthetically pleasing—emotions, experiences and aesthetics now drive consumer demand. Where before those educated in science, technology, engineering and math were the key players in the innovation process, now those who are trained in the arts are necessary for proper product design and success in the marketplace. Essentially, now that our left-brain needs have largely been taken care of, our right-brain yearns to be fed.

“Cultural Policies and Local Planning Strategies: What Is the Role of Culture in Local Sustainable Development?” (The Journal of Arts Management, Law, and Society Spring 2009 39/1 45-63) carries this same concept. In this article, the authors present a strategic model of a progressive cultural district based on an asset-action matrix that intersects cultural policy drivers with capital resources. The authors define a new model of a cultural district—the system-wide cultural district—as an emergent, self-organized model of cultural supply. The concept is illustrated by several successful examples that include Austin, Texas, Gateshead, UK, Linz, Austria, and Denver, Colorado (among others)

In Austin culture has played a valuable role in economic development. The city has more than one hundred stages and production centers, a contemporary visual arts museum, a musical theater, and two national dance companies. More than 200,000 people attend the Austin City Limits music festival every year. The annual South by Southwest Festival features rock concerts and film screenings that utilize new media technologies. Austin’s economic evolution stresses a good quality of life and a development process based on creativity and innovation. Austin not only has creativity, innovation, and support from big companies, but other strategic tools stress a collective community approach. Foundations and private companies have invested heavily in Austin’s social infrastructure because they recognize the need for “human capital.” Austin is an example of a development model that focuses not only on the creation of new jobs but also on improving the community.

Gateshead, UK has seen economic regeneration by local investment in the Baltic Flour Mills, the Millennium Bridge, and the Sage Opera House. The Baltic Flour Mills is a center for contemporary art housed in a grain warehouse. The redevelopment cost (£33.4 million) was covered by regional arts council, public and private investors, cultural organizations, and universities. The Baltic Flour Mills is separated from the Newcastle Quayside by the Millennium Bridge, which opened in 2001 and is the world’s first tilting bridge. It is accessible only to pedestrians and cycles. With its changing colors and unique shape, it has quickly become a regional icon. The Sage Opera House opened in 2001 thanks to a £70 million donation from the Sage Software Group.

Linz’s culture-led regeneration is due to the creative interaction between local cultural tradition and the media’s cutting-edge technology, especially Ars Electronica, a museum, a laboratory, a competition, and a festival. The Museum of the Future, on the north bank of the Danube, is a six-floor space where visitors can learn about technology. Ars Electronica is home to one of the few public 3-D caves in Europe, which creates computer-generated visual art exhibitions for the public and technology-oriented artists. The Futurelab is a complex that consists of studios where workshops are held and researchers carry out innovative projects on digital surfaces, in virtual environments, and in interactive space. The Prix Ars is a multidisciplinary competition on cyber arts that includes digital media designs incorporating art, science, and society. The new modern art gallery, Lentos, was commissioned in 2003 to host the Linz Neue Galerie’s collection. The Centre for Contemporary Art is an experimental laboratory for exploring art that accompanies the implementation of an artistic work from the idea phase to the exhibition. A public platform and a laboratory situation are provided for artists, usually from a younger generation. Concomitant symposia, mediation work, and live acts form networks with art projects and recipients. The quality of culture in Linz has always been high, and cooperation between multimedia and art firms has helped increase the local economy’s competitiveness. Linz applies for state grants, but also accesses capital from the private sector. This cultural effort to boost human capital has resulted in the development of entrepreneurship. Entrepreneurship, in turn, has played a role in the success of Linz’s creative industries.

Finally, the authors focus on Denver, Colorado. The results of the City’s cultural policy have been extraordinary. Two agencies play a decisive role in Colorado’s cultural development. The Scientific and Cultural Facilities District (SCFD) is a publicly financed agency whose aim is to support cultural organizations and activities in seven counties in Coloroado. The SCFD is a collaboration among rural, suburban, and urban counties that distributes more than $30 million to scientific and cultural organizations. It is supported by a 0.1 percent sales tax, which means that 1¢ of every $10 purchase in Adams, Arapahoe, Boulder, Broomfield, Denver, northern Douglas, and Jefferson counties supports metro Denver cultural organizations (2007). The Colorado Business Committee for the Arts (CBCA) serves as a catalyst for business-arts partnerships and creates awareness of the arts community as a vehicle for employee creativity, economic development, and business prosperity. The CBCA places business leaders on arts boards, sponsors organizational and audience development, and trains businesspeople to be arts advocates who use the arts to foster community development. The CBCA also serves as a resource for business by regularly monitoring the economic impact of cultural and scientific organizations in the region, informing the business community about arts issues that relate to business, enabling business leaders to understand the complexities of the cultural community, stimulate employee creativity and morale, build new businesses, and enhance their image.
According to the CBCA’s 2004 Study of Metro Denver Culture, culture in metro Denver had a $1.311 billion economic impact. The cultural industry employs more than 9,000 employees, disburses $86 million in wages, and pays almost $14 million in taxes. As a destination for cultural tourists, metro Denver attracted 2.8 million visitors from outside metro Denver and 1.4 million visitors from outside Colorado; these tourists had a $403 million impact on the economy. In 2007, the SCFD collected $35 million to invest in the cultural community. Of $1.3 billion in total economic activity, close to $500 million was the true economic impact. This represents a 14:1 return on investment, bolstered by the $35 million collected from a special taxation mode. Cultural facilities continue to transform metro Denver’s regional landscape.

In all of the examples, the marriage of art and business (though in different permutations) drove the economic success of the community.

These two articles are available through the Poudre River Public Library District’s business database, Business Source Premier.