Boston's Creative Economy

November, 2004

Boston’s Creative EconomyBOSTON REDEVELOPMENT AUTHORITY

This presentation was prepared for Create Boston by the BRA Research Division. The information provided within this report is the best available at the time of its publication.

This report as well as other data on Boston’s creative economy, can be found on Create Boston’s Website: www.createboston.com

All or partial use of the data found within this report must be cited. Our preferred citation is as follows: Boston Redevelopment Authority/Research Division, October 2005.

City of BostonThomas M. Menino, Mayor

Boston Redevelopment AuthorityMark Maloney, Director

Alvaro Lima, Director of Research

http://www.createboston.com/

Table of Contents:

I. Defining the “Creative Economy”

II. Making the Case - Creative Opportunities and Challenges

III. The Creative Economy Initiative - Recommendations

IV. Appendices

V. Glossary

Table of Contents:




IV. Appendices

V. Glossary

Defining the “Creative Economy”

It is clear from current writing that there is as yet no generally accepted definition of the “Creative Economy.”

The term was first used by Business Week in August of 2000 in a special issue on the 21st Century Corporation - www.businessweek.com/2000/00_35/b3696002.htm

John Howkins in his seminal book The Creative Economy (2001), describes an economy with fifteen “creative industry sectors” (Appendix I).

Richard Florida in The Rise of the Creative Class, defines the “Creative Economy” not in terms of industries but in terms of occupations and “creative classes” - (Appendix II).

The New England Council in its 2000 report, limits the “Creative Economy” strictly to artistic and cultural fields (Appendix III). 3

http://www.businessweek.com/2000/00_35/b3696002.htm

Our definition of the “Creative Economy” is very close to that of the New England Council and incorporates some, but not all, of the industries proposed by Howkins and Florida.

Our concept is at one time broader than that suggested by the New England Council. We include a broader range of industries. And our concept is narrower than that of either Howkins and Florida because our aim is to capture activities more closely connected to the artistic and cultural core.

Our narrower definition eliminates industries such as business services, law, health care, etc., that are generally accepted as distinct industries.

Our definition of the “Creative Economy” includes at the most aggregated level:

4

Written Media Film Broadcasting Crafts Performing Arts Visual Arts Architecture Photography Design Advertising Sound Recording & Music Publishing

Museums & Art Galleries Libraries & Archives Culture Education

Proposed Definition:

The “Creative Economy” is defined, for the purpose of this research, broadly, as those activities which have their origin in individual creativity, skill and talent and which have a potential for wealth and job creation. We include:

any direct activity in which individual creativity and skill is brought to bear, and which is characterized by innovation and originality and leads to the creation of intellectual property in the form of copyright; 5

any activity (upstream and downstream) which directly contributes to creative activities such that the product would not exist in the same form without it;

the self-employed (writers, artists, etc.) because the creative industry encompasses many freelance workers.

Drawing upon the analysis of production systems and production chains, the creative industry can be mapped according to the following “Creative Production Chain:”

Production(P)

Creation*(C)

Manufacturing(M)

Distribution(D)

Support Activities(SS)

cultural goodsand

services

heritage services

* content origination is at the heart of the “creative economy.”

Creative Production Chain

6

The stages of the “Creative Production Chain,” outlined above, illustrate the point that to be consumed, a cultural good or service must first be created, produced, perhaps manufactured, and distributed to consumers.

These “functional” categories provide a framework which can be used in the analysis of the “creative economy.”

To make this definition researchable, it was necessary to derive a set of categories from the North American Industry Classification System (NAICS) codes.

The NAICS is a structured indexing system, published by the U.S. Census Bureau, which provides a set of classifications of businesses by the type of economic activity in which they are engaged. The NAICS provides a widely-shared basis for classification of economic statistics and analysis (see Glossary).

7

Disaggregated Components of the “Creative Economy” Using Proposed Definition NAICS codes Creative Industries Creative Chain

Applied Arts54131 architectural services (C)54132 landscaping architectural services (C) 54141 interior design services (C)54142 industrial design services (C)54143 graphic design services (C)54149 other specialized design services (C)

Advertising54181 advertising agencies (P)54185 display advertising (P)54187 advertising material distribution services (D)54189 other services related to advertising (D)54183 media buying agencies (D)54184 media representatives (D)54186 direct mail advertising (P)

Performing Arts: Music, Theater and Dance71111 theater companies and dinner theater (P)71112 dance companies (P)71113 musical groups and artists (C)71119 other performing arts companies (P)45114 musical instrument and supplies stores (D)339992 musical instrument manufacturing (M)71131 promoters of entertainment events with facility (D)71132 promoters of entertainment events without facility (D)71141 agents and managers for artists, athletes, entertainers and other public figures (D)

(C) (P)(M)(D)(SS)

8

CreationProductionManufacturingDistributionSupport Activities

-----

NAICS codes Creative Industries

Publishing and Printing51111 newspaper publishers (P)51112 periodical publishers (P)51113 book publishers (P)51119 other publishers (P)323111 commercial gravure printing (M)323113 commercial screen printing (M)323114 quick printing (M)323115 digital printing (M)323119 other printing (M)41442 book, periodical and newspaper wholesalers (D)45121 book stores and news dealers (D)

Broadcasting51311 radio broadcasting (P)51312 television broadcasting (P)51321 cable networks (D)51322 cable and other program distribution (D)

Sound Recording and Music Publishing51221 record production (P)51222 integrated record production and distribution (P)51224 sound recording studios (P)33461 manufacturing and reproducing magnetic and optical media (M)51223 music publishers - publishing and printing combined (M)45122 pre-recorded tape, compact disc and record stores (D)

9

NAICS codes Creative Industries

Film, Video and Photography51211 motion picture and video production (P)51212 motion picture and video distribution (D)51213 motion picture and video exhibition (D)51219 post-production and other motion picture and video industries (m)41445 video cassette wholesalers (D) 53223 video tape and disc rental (D)54192 photographic services (C)812921 photo finishing laboratories (except one hour) (P)45392 art dealers (D)44313 camera and photographic supplies stores (D)325992 photographic film, paper, plate and chemical manufacturing (M)339942 lead pencil and art good manufacturing (M)

Heritage71211 museums (P)71212 heritage and historic sites (P)71219 other heritage institutions (P)71213 zoos and botanical gardens (P)

Support61161 fine arts schools (SS)51412 libraries and archives (SS)

Independent Artists 71151 independent artists, writers and performers (C)51411 news syndicates (C)

10

Table of Contents:




IV. Appendices

V. Glossary

Creative industries contribute to economic vitality in many ways. They:

create jobs and income;

contribute to government revenues (local, state and federal);

attract industry and skilled workers;

encourage tourism and conventions;

highlight a location’s history and traditions;

enhance property values;

serve as important anchors for downtown and neighborhood revitalization efforts;

promote tolerance and diversity.

12

In the U.S., copyright industries, which include film, video, music, publishing, etc. generate nearly $450 billion in annual revenues, roughly 5% of the U.S

The “creative industries” economic contribution to the national economy is substantial:

Gross Domestic Product. They contribute more than $79 billion in global sales.

The number of people who work in these industries is estimated at 7.6 million, growing at a rate that has far outpaced job growth in many other economic sectors.

The non-profit segment of the creative industries generates $36.8 billion in revenues, $25.2 billion in personal income and 1.3 million full-time-equivalent jobs (1992).

Data from the Bureau of Economic Analysis (BEA) show that consumers spent $10.2 billion (or $37.40 per capita) on admissions to performing arts and events in 1999 - $2 billion more than consumer spending on spectator sports.

“A LIVELY CULTURAL COMMUNITY AND A HEALTHY ECONOMY ARE LIKE AN EQUATION”(THE CREATIVE CITY, A WORKPRINT, APRIL 2001, TORONTO CULTURE)

13

The Travel Industry Association of America (TIAA) reported that, in 2001, 65% of American adult travelers included a cultural, arts, heritage, or historic activity or event while on a trip of 50 miles or more - represents 92.7 million cultural travelers.

Of those 29.6 million travelers who added time:

43% added part of one day 31% added one extra night 19% added two extra nights 7% added three or more extra nights

These travelers are wealthier (with average annual incomes of $48,000 vs. $37,000 for all other travelers), better educated, and likely to spend more money than other kind of tourists.

14

In 2001, 29.6 million travelers lengthened their trips to attend arts,cultural, historic, or heritage activities - an increase from 29% in 1998 to 32% in 2001 of total cultural travelers in the U.S.

Florida in The Rise of the Creative Class concludes that, in order to have a vibrant economy, it is not enough to be technologically savvy. A city must also be socially tolerant and culturally diverse thereby building an environment that can attract and retain the most important resource for a vibrant economy - creative people.

The “creative industries” are also emerging as a potent force in the economic life of cities:

TOLERANCE

TECHNOLOGY TALENT

- CREATIVE PLACES -

“ People Climate” “ Business Climate”

According to Florida, this explains why cities like Baltimore, St. Louis and Pittsburgh fail to grow despite their deep reservoirs of technology and the presence of world-class universities. Because they have not been sufficiently tolerant, creative talent leaves.

It also explains why cities like Miami and New Orleans do not make the grade even though they are lifestyle Meccas - they lack a technology base.

Successful cities like San Francisco, Boston, Austin and Seattle put all 3Ts together - they are truly creative cities.

Boston has the right stuff: the brains and talent to compete, the know-how to patent and license its technology, the entrepreneurs who are willing to take risk and the kind of diverse and tolerant society that attracts and retains creative people (see Appendix IV).

Creative Class

High Tech

Innovation

Diversity

Boston’s Rankings on Florida’s Creativity Index

6

Boston’s Overall Ranking(All Regions)

0 4 8 12 41

2

12

41

3

During the 1990s creative industries and artists gravitated towards three pre-eminent centers of creative activity: Los Angeles, New York and San Francisco. These gains were accompanied by notable specializations in eight other metros: Washington DC, Seattle, Boston, Minneapolis-St. Paul, Orange County, Miami, Portland and San Diego.

It also explains why cities like Miami and New Orleans do not make the grade even though they are lifestyle meccas - they lack a technology base.

Successful cities like San Francisco, Boston, Austin and Seattle put all 3Ts together - they are truly creative cities.

Boston has the right stuff: the brains and talent to compete, the know-how to patent and license its technology, the entrepreneurs who are willing to take risk and the kind of diverse and tolerant society that attracts and retains creative people.

During the 1990s creative industries and artists gravitated towards three pre-eminent centers of creative activity: Los Angeles, New York and San Francisco. These gains were accompanied by notable specializations in eight other metros: Washington DC, Seattle, Boston, Minneapolis-St. Paul, Orange County, Miami, Portland and San Diego.

16

0 0.5 1 1.5 2 2.5 3 3.5

St. Louis, MO-IL

Detroi t, MI

Houston, TX

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Riverside-Bernardino, CA

Cleveland, OH

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Denver , CO

Kansas Ci ty, MO-KS

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San Francisco-Oakland, CA

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New York, NY-NJ

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Source: Adapted from The Artistic Dividend Revisited, Ann Markusen et.all, March 2004

Artistic Concentrations for the 29 Largest U.S. Metro Areas by Employment, 2000

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Boston’s Share of State Employment = 17.2%

Boston’s Specialization By Creative Industry Segments

Boston’s Share of State’s

Creative Economy

Employment

(2002)

Percent Change, 1998–2002

= 0–999 = 1,000–3,999 = 4,000+

Employment Range

Performing Arts

Heritage

Applied Arts

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Advertising

Publishing & PrintingBroadcasting

Film, Video & Photography

Source: U.S. Census County Business Patterns; BRA Research Division Analysis18

Boston’s share of State = 17.2%

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Boston’s Share of State’s

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Employment

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Percent Change, 1998–2002

Note: Data points too large to fit on the graph are placed on the borders and the values are given as: (y-axis, x-axis).Source: U.S. Census County Business Patterns; BRA Research Division Analysis

= 0–99 = 100–499 = 500–999 = 1,000+

Book Publishers

Architectural Services

Direct Mail Advertising

Newspaper PublishersAdvertising Agencies

Independent Artists

Promoters of Entertainment w/o facility

Cable & Program Distribution

Musical Groups & Artists

Bookstores & News Dealers

Museums

Zoos & Botanical Gardens

425.4% growth

Periodical Publishers

Radio Broadcasting

Dance Companies

Libraries & Archives

Media Representatives

Interior Designers

Art Dealers

Employment Range

Boston’s Specialization By Creative Sub-industries

T.V. Broadcasting

19

Economic Impact of Boston’s Creative Economy (2002)

METRO AREACITY OF BOSTON

Gross Regional Product $6.5 billion

Total Jobs

• Direct

• Indirect

$7.6 billion

47,020 jobs

29,720 jobs

17,300 jobs

Personal Income $1.1 billion

Output $10.7 billion

60,800 jobs

-

31,080 jobs

$2.6 billion

$12.7 billion

Creative employment in 2002 totaled 29,720 direct jobs excluding self-employment. This was 5.5% of Boston’s total private sector employment. When self-employment is added, creative employment increased to 34,085.

Source: BRA Research Division Analysis; REMI Simulation

The creative economy supports an additional 17,300 jobs in other industries such as retail, business services, professional services, and food services. These spin-off jobs represent a regional employment multiplier of one. That is, for every direct job in the creative sector, one job is created elsewhere.

In 2002, Boston’s creative industries added $10.7 billion

to Boston’s total economic output (7.8%) and $2.6 billion to personal income within the

region as a whole.

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In 2002, the creative industries would have been the seventh largest industry in Boston ahead of industries such as Manufacturing, Wholesale Trade, Retail Trade and Construction. For a snapshot of the creative economy see Appendix V.

EMPLOYMENT COMPARISION - BOSTON (2002)

Total income reached $1.9 billion in 2002 (payroll plus receipts of self-employed).

Performing Arts and Heritage have grown most quickly (49.3% and 31.2% over the period 1998-2002). Broadcasting, Independent Arts, Support Services and Applied Arts also showed growth well above the average for the State economy and that of creative industries as a whole (25.1%, 25.0%, 23.6% and 21.9%, respectively).

Boston’s creative industries grew by 11.3% between 1998 and 2002. This compares to 4.5% for the Massachusetts economy as a whole over the same period.

Source: U.S. Census County Business Patterns; BRA Research Division Analysis

21

Creative Industries General Characteristics

Description Establishments

(2002) Employment

(2002) Total Wages

(2002)

Average Employees/

Establishments (2002)

Employment Growth

(1998-2002)

Wage Growth (1998-2002)

Advertising 131 3,425 $293,126,036 26 -3.1% 16.6%

Applied Arts 383 4,578 $268,816,520 12 21.9% 14.6%

Broadcasting 51 4,215 $293,963,656 83 25.1% 16.2%

Heritage 33 1,839 $53,009,069 56 31.2% 20.6%

Independent Artists 34 250 $10,766,957 7 25.0% -36.6%

Film, Video and Photography 213 1,230 $37,650,220 6 -26.3% 13.2%

Performing Arts 93 3,806 $174,749,368 41 49.3% -8.0%

Publishing and Printing 253 9,465 $625,442,150 37 1.0% 39.1%

Sound Recording and Music 48 486 $10,882,265 10 -3.1% 24.8%

Support Services 36 425 $22,304,966 12 23.6% 141.2%

Total 1,275 29,720 $1,790,711,207 23.3 11.3% 20.5%

Self-employed 4,365 4,365 $119,579,137 - - -

Advertising; Film, Video and Photography; Sound Recording and Music lost employment over the period 1998-2002.


22

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Boston Employment Growth and Decline by Creative Industry Segment (1998 to 2002)


Net Job Creation from 1998-2002: +3,024


23

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Boston Employment Growth and Decline by Creative Sub-industries (1998 to 2002)

Source: U.S. Census County Business Patterns; BRA Research Division Analysis24

In 2002, there were 1,275 creative establishments in Boston (see Appendix IV for a synopsis).

253

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Employment and Establishments by Creative Sectors (2002)


These establishments

The true proportion of enterprises in the creative industries is likely to be higher as certain industries within its sectors tend to be very small businesses. Non-employer establishments (self-employment) are not included on the graph above.

represented 16.9% of all creative enterprises in Massachusetts.

25

Nearly 84% of these establishments belong to five sectors: Applied Arts (383 establishments), Publishing and Printing (253 establishments), Film, Video and Photography (213 establishments); Advertising ( 131 establishments) and Performing Arts (93 establishments).

The creative industries tend to be heavily dominated by micro size businesses in most sectors (see Appendix IV).

The “Creative Production Chain” of Boston’s creative industries is heavily concentrated in the production stage (55.8%) followed by distribution (21.7%) and creation (19.0%).

Of these stages, production and manufacturing decreased during the period 1998-2002. During the same period, wages grew by 25.5% and 47.8% respectively, possibly indicating an increase in productivity.

26

Composition of Boston’s “Creative Production Chain”

CreationCreationCreationCreation

19.0%19.0%

22.6%22.6%

$58,123$58,123

4.5%4.5%

1010

19.0%19.0%

22.6%22.6%

$58,123$58,123

4.5%4.5%

1010

Share of Employment, 2002

Employment Growth, 1998 to 2002

Average Wage, 2002

Wage Growth, 1998 to 2002

Number of NAICS Industries

Source: U.S. Census County Business Patterns, Massachusetts Department of Employment Training, BRA Research Division Analysis

ProductionProductionProductionProduction ManufacturingManufacturingManufacturingManufacturing DistributionDistributionDistributionDistribution Support Support IndustriesIndustriesSupport Support

IndustriesIndustries

55.8%55.8%

1.2%1.2%

$68,169$68,169

25.5%25.5%

2121

55.8%55.8%

1.2%1.2%

$68,169$68,169

25.5%25.5%

2121

2.1%2.1%

-30.0%-30.0%

$49,477$49,477

47.8%47.8%

1111

2.1%2.1%

-30.0%-30.0%

$49,477$49,477

47.8%47.8%

1111

21.7%21.7%

44.3%44.3%

$43,334$43,334

28.2%28.2%

1818

21.7%21.7%

44.3%44.3%

$43,334$43,334

28.2%28.2%

1818

1.43%1.43%

23.6%23.6%

$52,521$52,521

141.2%141.2%

22

1.43%1.43%

23.6%23.6%

$52,521$52,521

141.2%141.2%

22

27

Creative industries have primary linkages with other industries. There are mutually beneficial relationships between Creative Industries, Tourism, Education & Knowledge Creation, and Information Technology.

Creative Industries Tourism

Linkages between Creative Industries and Tourism are reciprocal. On the one hand, tourists provide a

potential market for many creative industries (live performance, exhibitions, festivals, heritage, etc.) bringing money into Boston’s creative economy. On the other hand, creative industries may be part of a package that attracts tourists in the first place.

Linkages between Creative industries and Education and Knowledge Creation industries are varied. Creative industries themselves have educational segments. In Boston there are 8 schools devoted to art education and training. Emerson College is the largest with 4,000 students followed by Berklee College of Music (2,734), Massachusetts College of Art (2,328), School of the

Education & Knowledge

Creation

Information Technology

Linkages with Other Industries:

28

Museum of Fine Arts (1,756), New England Conservatory of Music (794), Boston Architectural Center (674), Art Institute of Boston (514) and Boston Conservatory (492).

In 2000, college enrollment in art colleges and universities totaled 13,366 (10% of total enrollment).

The interaction of Creative Industries and Information Technology is also varied, from digital media to web design.

Economic Development

Creative industries play an important role at the intersection of economic, cultural and community development.

Finally, the history of creative development is rich with linkages between culture and place making, community building and economic development:

Creative Industries at the Intersection of Economic, Cultural, and Community Development:

29

Cultural Development

Community Development

Arts and culture are often about crossing boundaries, because creativity is about seeing things in new ways. They nurture the process of cross cultural understanding and integration.

The arts have always been a pathway to further civic engagement. As communities grow and demographics shift, creative and cultural activities can be used to find and express shared hopes and values.

Research shows that disadvantaged neighborhoods with higher cultural participation are four times more likely than average to have low delinquency rates.

Communication through the arts and other creative activities gives immigrants a direct way to reclaim and assert their status as respected accomplished adults.

Creative industries contribute to an improved quality of life with consequent impact on local economies.

30

Creative activities generate new and productive uses for neighborhood facilities and underutilized or abandoned spaces.

A vibrant creative economy further helps the business community and economic development efforts by providing a pool of talent to draw upon for special design, organizational and marketing efforts.

The Creative Economy can have a catalyzing role in downtown and neighborhood development and revitalization efforts:

Attract additional people and businesses to the downtown core;

Reverse the migration to malls in the outskirts of town;

Create a more vital “lived in” downtown that doesn’t shut down at the end of the work day;

Create productive new uses for neighborhood facilities and under-utilized or abandoned spaces. 31

Real Estate Challenges:

Rapidly rising property values and rents have dislocated cultural organizations and artists from some neighborhoods, undermining the city’s ability to support its creative community:

as demand for space has increased, the supply of available space in the city has not increased at the same pace;

as older buildings and warehouses are rehabilitated for new development, the affordable nooks traditionally used by emerging and independent artists are lost, including studio space and affordable housing options;

without an economic plan, the creative industries continually collide with other industries, in particular, with Back Streets.

Barriers to participation:

Bostonians, in particular poor children and the elderly, face significant barriers to their participation in the art sector of the Creative Economy - the cost of attending cultural events is too high for many of them to participate regularly;

Cultural offerings are unevenly available in the neighborhoods of Boston;

Full information about cultural opportunities and activities are lacking;

Table of Contents:




IV. Appendices

V. Glossary

Following are a series of recommendations to inform the strategic and programmatic aspects of the Creative Economy Initiative:

Some of the recommendations that follow are already being implemented or considered by various city departments. While the City has a role in most of the recommendations, many rely on the active support and/or leadership of artists and other creative economy leaders and the business community;

The recommendations presented are a list of of best practices roughly organized under five headings:

Infrastructure & Financing Mechanisms

Economic Development & Planning

Community Development & Civic Participation

Select Creative Sub-sectors

The recommendations are also structured around a general framework that can be summarized as follows:

“make it central … take it out … and into the neighborhoods …”

INFRASTRUCTURE & FINANCING MECHANISMS:

Expand affordable live/work space for artists and their families by tapping into long-term delinquent properties through land banking;

Create incentives to private developers to build affordable new structures and adaptive reuse of existing buildings to house creative enterprises (exhibit, rehearsal, performance, gallery, incubator spaces). Ideally, these places should have a rich mix of these uses so that they can “cross-pollinate;”

Create incentives for property owners to use vacant ground-floor space for cultural and creative activities;

Develop mechanisms and incentives to enable artists to build and capture sweat equity so that they are not priced out of neighborhoods as property values rise;

Explore the feasibility of developing a city-owned property (e.g. Ropewalk) as an incubator for creative organizations and enterprises;

Include “creative space” and “public arts” as a mitigating factor in new development;

Explore the feasibility of a bond issue for creative infrastructure;

Explore the feasibility of introducing legislation to create tax-free “Creative Zones” by allowing artists who work and live in the zone, exemptions on both state income tax and on the profits from sales of work (film, photography, sculpture, literature, paintings, etc.);

Develop broad public/private partnerships to create a dedicated fund in support of creative and cultural development;

SELECT CREATIVE SUB-SECTORSC

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Explore the feasibility of creating a special dedicated tax to support the arts and creative industries (sales, hotel-motel, adult entertainment, video, cable, etc.);

Explore the feasibility of creating special state tax credits for investment in select creative industries such as film and video production, television programming, etc.;

Create “Gateways” at distinct community focal points and entrances designed by local artists;

Start a national five-year Boston creative Economy Endowment Campaign with a goal of $25 million. A corporate leader of sufficient prominence and prestige should be enlisted to lead this effort with the Mayor;

Evaluate a feasibility of a tax bill check-off for the arts and other creative economy projects;

ECONOMIC DEVELOPMENT & PLANNING

Create a designated creative economy financing program within an existing financing structure (BIDFA, etc.) to focus on loan assistance to creative economy entrepreneurs in partnership with local banks and micro-lending organizations such as ACCION;

Facilitate the creation of a small business development program focused on creative entrepreneurs;

Provide support to creative entrepreneurial activities including the facilitation of collaborations with large corporations to acquire their products;

Commission the art work of local artists as civic and corporate gifts;

Support the creation of “creative networks” to enable the exchange of information regarding business practices, access to capital, etc.;


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Develop a cultural tourism agenda to “sell” Boston as a major cultural and heritage center;

Encourage cooperation between cultural and tourism organizations to share information and to develop joint strategies for increasing the cultural tourism potential of Boston;

Promote international exchange to promote creative thinking and to build a cultural import/export economy;

Help to forge ongoing relationships between institutions of higher education, particularly those in the creative sector, and the broad creative community;

Establish a Public Art Program to build a civic art collection to be displayed throughout Boston’s public buildings;

Create “Urban Art Trails” to help pedestrians walking within a neighborhood and from one neighborhood to another;

Create a Boston Public Art Master Plan;

Work with the MBTA to create a series of galleries throughout MBTA stations inspired on the Gallery@Green Street in Jamaica Plain (retail could play an important complement);

Include cultural planning as an essential part of the BRA’s neighborhood master planning process;

Create partnerships between the creative sector and Boston Main Streets, Parks Department, etc. to increase programming at public places that stimulates pedestrian traffic;

Create a funding mechanism to support an Arts-in-residence program in the three most successful Main Street districts;

Work with Logan Airport, the World Trade Center and the Convention Center among others, to provide space for art galleries and other display of Boston’s creative economy assets;


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COMMUNITY DEVELOPMENT & CIVIC PARTICIPATION:

Support projects that build on the unique and diverse community attributes of Boston’s neighborhoods;

Support projects that document community history and culture such as oral history projects and visual chronicles;

Create an annual “Mayor’s Award for Creative Achievement;”

Provide youth-friendly spaces and programs throughout community centers that give youth a safe place to hang out and be creative;

Encourage major cultural organizations to open up their facilities to Boston’s communities in particular minority and immigrant communities;

Link after school programs, community center’s activities, senior citizens organizations, etc. to creative institutions and organizations;

Promote creative careers among youth by supporting internships and job shadow programs with creative organizations and institutions;

Facilitate the creation of partnerships between Boston’s Public Library, arts galleries, museums, etc. to expand creative offerings;

Preserve and celebrate neighborhood heritage assets;

Facilitate the creation of a speaker bureau for Boston’s Creative Economy to provide speakers to promote Boston’s creative economy;

Convene annual meetings of representatives of Boston’s major creative economy organizations such as museums, schools, etc.;


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Involve artists and other creative workers in civic decision-making by placing them in leadership positions on a wide variety of civic advisory commissions, boards, etc.;

Encourage the Greater Boston Chamber of Commerce, the Tourism Bureau, Convention Authority, major corporations and other business organizations to include arts and creative economy leaders in their boards;

Insure broad access to the creative economy offerings through neighborhood programs, reduced admission (cultural passes) to poor children and the elderly;

Encourage large cultural institutions such as museums, schools of arts and music, etc. to establish satellite facilities in Boston’s neighborhoods;

Disseminate information on cultural and other creative offerings throughout Boston’s neighborhoods;

Establish an arts and creative shuttle to bring children and the elderly to local galleries, concerts, theater, etc.;

Create a well crafted message to promote Boston’s creative economy;

utilize local cable networks and the City’s TV channel to promote the creative economy;

SELECTED CREATIVE SUB-SECTORS:

(waiting definition from Economic Development Initiatives’ staff).


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Table of Contents:




IV. Appendices

V. Glossary

Appendix I: Core Industries of the “Creative Economy” as defined by John Howkins

R&D Publishing Software TV and Radio Design Music Film Toys and Games Advertising Architecture Performing Arts Crafts Video Games Fashion Art

33

Creative ClassComputer and mathematical occupationsArchitecture and engineering occupationsLife, physical, and social science occupationsEducation, training, and library occupationsArts, design, entertainment, sports, and media occupationsManagement occupationsBusiness and financial operations occupationsLegal occupationsHealthcare practitioners and technical occupationsHigh-end sales and sales management

Working ClassConstruction and extraction occupationsInstallation, maintenance, and repair occupationsProduction occupationsTransportation and material moving occupations

Service ClassHealth care support occupationsFood preparation and food service-related occupationsBuilding and ground cleaning and maintenance occupationsPersonal care and service occupationsLow-end sales and related occupationsOffice and administrative support occupationsCommunity and social services occupationsProtective service occupations

AgricultureFarming, fishing, and forestry occupations

Appendix II: Richard Florida’s Definition of “Classes”

34

Appendix II: Richard Florida’s Definition of “Classes” (cont.)

Key Highlights

38 Million people are in the “creative class;” more than 55% of the United States GDP is produced by the “creative class;”

the “creative class” consists of more than 30% of the Unites States workforce;

driven force behind the “creative class” is economic; people adding value through their creativity;

economic growth occurs in places where creative people of all types live. Matching of people and jobs is done by geographic place rather than through corporations. “City Air makes Men Free” (Stadluft Macht Frei);

instead of people moving to jobs, companies move to places where there is a large pool of skilled and talented workers;

three characteristics of the “creative class:” need for flexibility, prevalence of change, importance of speed;

three values of the “creative class:” Individuality, Meritocracy, Diversity and Openness.

Service Class: 55 million people (45%) of the United States workforce are in the services class. Providing answers to the demands of the creative class. Typically low-wage and low autonomy occupations.

Working Class: 33 million people (25%) of the United States workforce are in the working class. Declining sharply, due in part to a shift from the industrial economy, and social and demographic changes.

35

Appendix III: The New England Council’s Definition ofthe “Creative Economy”

Applied Arts


Interior Design Services

Industrial Design Services

Graphic Design Services

Other Specialized Design Services

Advertising Agencies

Display Advertising

Photographic Services - Commercial

Performing Arts: Music, Theater, Dance

Theater Companies and Dinner Theaters - Commercial

Dance Companies - Commercial

Musical Groups and Artists - Commercial

Other Performing Arts Companies - Commercial

Musical Instrument and Supplies Stores - Commercial

Musical Instrument Manufacturing - Commercial

Promoters of Performing Arts - Commercial1Nonprofit performing arts

Visual Arts

Art Dealers - Commercial

Nonprofit Visual Arts

Camera and Photographic Supplies Stores - Commercial

Agents and Managers for Artists - Commercial

Photographic Film, Paper, Plate and Chemical Manufacturing -

Commercial

Lead Pencil and Art Good Manufacturing - Commercial

Art Print Gravure Printing - Commercial

Literary Arts

Book Publishers - Commercial

Libraries and Humanities - Nonprofit

Media

Cable and Other Program Distribution

Nonprofit Media

Motion Picture and Sound Recording Industry - Commercial

Prerecorded Compact Disc, Tape and Record Reproducing -

Commercial

Heritage

Museums - Taxable

Nonprofit Ethnic, Historic, Museums

Historical Sites - Taxable

SupportFine Arts Schools

Nonprofit Support and Education

Independent Artists

Independent Artists, Writers and Performers - Incorporated

Independent Artists, Writers and Performers - Unincorporated1

1

1

1

1

1

Nonprofit data by product line was compiled by Greg Wassall of Northeastern University and based upon a survey of non-profit arts and cultural institutions in 1996. (from: The Creative Economy Initiative by the New England Council)

1

The New England Council uses the 1997 US Economic Census, the Current Population

36

Appendix IV: Establishments by Employment-Size Class by Industry for Boston.

70%

22%

7% 1%

CREATIVE INDUSTRIES (2002)

0

100

200

300

400500

600

700

800

900

1000

Micro (1-9) Small (10-49) Medium (50-499)

Large (500 ormore)

Micro (1-9)

Small (10-49)

Medium (50-499)

Large (500 or more)

Source: U.S. Census County Business Patterns; DET; ABI; and BRA Research Division Analysis

Number of Establishments by Employment-size Class

Share of Establishments by Employment-size Class

37

Appendix IV: Establishments by Employment-Size Class by Industry for Boston (cont.)

ADVERTISING (2002)

66%

30%

2%2%

0

10

20

30

4050

60

70

80

90

100


Large (500 ormore)

Micro (1-9)

Small (10-49)

Medium (50-499)

Large (500 or more)

75%

20%

5% 0%

0

50

100

150

200

250

300

350


Large (500 ormore)

Micro (1-9)

Small (10-49)

Medium (50-499)

Large (500 or more)

APPLIED ARTS (2002)

Source: U.S. Census County Business Patterns; DET; ABI; and BRA Research Division Analysis 38

BROADCASTING (2002)

27%

31%

38%

4%

0

2

4

6

810

12

14

16

18

20


Large (500 ormore)

Micro (1-9)

Small (10-49)

Medium (50-499)

Large (500 or more)

24%

18%0%

58% 0

2

4

6

810

12

14

16

18

20


Large (500 ormore)

Micro (1-9)

Small (10-49)

Medium (50-499)

Large (500 or more)

HERITAGE (2002)



INDEPENDENT ARTS (2002)

79%

18%

0%3%

0

5

10

15

20

25

30


Large (500 ormore)

Micro (1-9)

Small (10-49)

Medium (50-499)

Large (500 or more)

82%

0%1%

17%

0

20

40

60

80100

120

140

160

180

200


Large (500 ormore)

Micro (1-9)

Small (10-49)

Medium (50-499)

Large (500 or more)

FILM, VIDEO & PHOTOGRAPHY (2002)



PERFORMING ARTS (2002)

70%

18%

9%3%

0

10

20

30

40

50

60

70


Large (500 ormore)

Micro (1-9)

Small (10-49)

Medium (50-499)

Large (500 or more)

62%

10%

26%

2%

0

20

40

60

80

100

120

140

160

180


Large (500 ormore)

Micro (1-9)

Small (10-49)

Medium (50-499)

Large (500 or more)

PUBLISHING AND PRINTING (2002)



SOUND AND RECORDING (2002)

Source: U.S. Census County Business Patterns; DET; ABI; and BRA Research Division Analysis

71%

25%

4% 0%

0

5

10

15

20

25

30

35

40


Large (500 ormore)

Micro (1-9)

Small (10-49)

Medium (50-499)

Large (500 or more)

73%

19%

0%8%

0

5

10

15

20

25

30


Large (500 ormore)

Micro (1-9)

Small (10-49)

Medium (50-499)

Large (500 or more)

SUPPORT SERVICES (2002)


42

Appendix V: Boston’s Creative Economy “Snapshot”

37%

49%

6%2%

0%

4%2%

SUB-INDUSTRY COMPOSITION BY EMPLOYMENT

ADVERTISING SNAPSHOT (2002) TOP 10 EMPLOYERS

CHANGE IN EMPLOYMENT (1998-2002)

Source: U.S. Census County Business Patterns; DET; ABI; Boston Business Journal 2004 Book of Lists; and BRA Research Division Analysis

1 Location Quotient (LQ) measures Boston’s share of employment compared to the State average. An LQ of 1 means that Boston’s share is equal to the State’s.

Advertising represents 11.5% of Boston's total creative industry employment.

The Employee to Establishment Ratio for Advertising is 26:1

Top 10 Employers:Allied Advertising Agency Hill, Holliday, Connors, CosmopulosArnold Integrated Solutions Irma S. Mann Strategic Marketing Inc.Clarke Communications Group Kelly Habib John Integrated MarketingConnelly Partners Lehman Millet Inc.Gearon Hoffman Inc. Modernista

0

500

1,000

1,500

2,000

2,500

AdvertisingAgencies

Media BuyingAgencies

MediaRepresentatives

DisplayAdvertising

Direct MailAdvertising

AdvertisingMaterial

DistributionServices

Other ServicesRelated toAdvertising

Advertising Agencies

Media Buying Agencies

Media Representatives

Display Advertising

Direct Mail Advertising

Adver. Material Dist. Serv.

Other Advertising Services

1998

2002

Employment 3,425

Employment Growth (1998-2002) -3.1%

Number of Establishments 131

Average Wages $85,578

Wage Growth 16.6%

Boston’s State Location Quotient1 2.02

43

79%

5%

6%

1%9% 0%

Employment 4,578

Employment Growth (1998-2002) 21.9%



Wage Growth 14.6%


Applied Arts represents 15.4% of Boston's total creative industry employment.

The Employee to Establishment Ratio for Applied Arts is 12:1

Top 10 Employers:CBT Childs Bertman Tseckares Jacobs EngineeringCID Associates Incorporated Payette Associates Inc.Elkus Manfredi Architects Shepley Bulfinch RichardsonGeorge BH Macomber Co. Spire Printing SVCGoody Clancy & Associates Inc. Bergmeyer Associates

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Architectural Serv. Landscape Arch.Serv.

Interior Design Serv. Industrial DesignServ.

Graphic Design Serv. Other SpecializedDesign


Landscape Arch. Services

Interior Design Services

Industrial Design Services

Graphic Design Services

Other Specialized Design

Appendix V: Boston’s Creative Economy “Snapshot” (cont.)


APPLIED ARTS SNAPSHOT (2002) TOP 10 EMPLOYERS




1998

2002

44

46%

18% 18%

18%

Employment 4,215




Wage Growth 16.2%


Broadcasting represents 14.2% of Boston's total creative industry employment.

The Employee to Establishment Ratio for Broadcasting is 83:1

Top 10 Employers:AT&T Broadband WBZEntercom WGBXGreater Boston Radio Group WHDHHemisphere Broadcasting WLVIWBUR WQSX

0

500

1,000

1,500

2,000

2,500

Radio Broadcasting T.V. Broadcasting Cable Netw orks Cable & Other ProgramDist.

Radio Broadcasting

Television Broadcasting

Cable Networks

Cable & Other ProgramDistribution


BROADCASTING SNAPSHOT (2002) TOP 10 EMPLOYERS




1998

2002


45

3%

53%

3%

41%

Employment 1,839




Wage Growth 20.6%


Heritage represents 6.2% of Boston's total creative industry employment.

The Employee to Establishment Ratio for Heritage is 56:1

0

200

400

600

800

1,000

1,200

Museums Heritage & Historic Sites Zoos & BotanicalGardens

Other HeritageInstitutions

Museums

Heritage & Historic Sites

Zoos & Botanical Gardens

Other Heritage Institutions

Top 10 Employers:Franklin Park Zoo Museum of Science, BostonIsabella Stewart Gardner Museum New England AquariumJFK Library and Museum Old State House MuseumMuseum of Afro-American Hist. The Children’s Museum Museum of Fine Arts, Boston USS Constitution Museum


HERITAGE SNAPSHOT (2002) TOP 10 EMPLOYERS




1998

2002


46

50%

50%

Employment 250




Wage Growth -36.6%


Independent Arts represents 0.8% of Boston's total creative industry

employment.

The Employee to Establishment Ratio for Independent Arts is 7:1

0

20

40

60

80

100

120

140

New s Syndicates Independent Artists, Writers & Performers

News Syndicates

Independent Artists,Writers & Performers

Top 10 Employers:Associated Press D.J. Chris Fiore Inc.Blackside Inc. Finish LimitedBoston Bureau Productions Liberty Book IIBusiness Wire P.R. Newswire Association Inc.Concannon Group Rich Inc.


INDEPENDENT ARTS SNAPSHOT (2002) TOP 10 EMPLOYERS




1998

2002


47

5%

22%

5%24%

6%

3%

15%8%1%

1%

10%

Employment 1,230




Wage Growth 13.2%


Film, Video & Photography represents 4.1% of Boston's total creative industry employment.

The Employee to Establishment Ratio for Film, Video & Photography is 6:1

Top 10 Employers:Blockbuster Video Hoyts CinemasBoston Corporate Art Hub VideoBoston Photo Imaging Light SourcesCabot Corporation Rendon GroupE. Philip Levine Inc. WGBH Production SVC

0

100

200

300

400

500

Cam

era

& P

hoto

grap

hic

Sup

plie

sS

tore

s

Art

Dea

lers

Mot

ion

Pict

ure

& V

ideo

Pro

duct

ion

Mot

ion

Pict

ure

& V

ideo

Dis

trib

utio

n

Mot

ion

Pict

ure

& V

ideo

Exh

ibiti

on

Post

-Pro

duct

ion

& o

ther

Vid

eo T

ape

& D

isc

Ren

tal

Phot

ogra

phic

Ser

vice

s

Phot

ogra

phic

Film

Man

ufac

turin

g

Art

Goo

d M

anuf

actu

ring

Phot

o Fi

nish

ing

Labo

rato

ries

(not

1hr)

Camera/Photo Supplies

Art Dealers

M.P. & Video Production

M.P. & Video Distribution

M.P. & Video Exhibition

Post-Production & other

Video Tape & Disc Rental

Photographic Services

Photo Film Manufacturing

Art Good Manufacturing

Photo Finishing Labs


FILM, VIDEO & PHOTOGRAPHY SNAPSHOT (2002) TOP 10 EMPLOYERS




1998

2002


48

0%

10%

2%

18%

10%

10%3%2%

45%

Employment 3,806




Wage Growth -8.0%


Performing Arts represents 12.8% of Boston's total creative industry employment.

The Employee to Establishment Ratio for Performing Arts is 41:1

Top 10 Employers:Aramark Boston Symphony Orchestra Inc.Blue Man Group Broadway in BostonBoston Ballet Co. Huntington Theatre Co. Inc.Boston Concessions at the Wang NBG CorporationBoston Music Co. Shear Madness Box Office

0200400600800

100012001400160018002000

Mus

ical

Inst

rum

ent &

Sup

plie

s S

tore

s

Thea

ter

Com

pani

es

Dan

ceC

ompa

nies

Mus

ical

Gro

ups

& A

rtis

ts

Oth

er P

erfo

rmin

gA

rts

Com

pani

es

Prom

oter

s w

ithFa

cilit

y

Prom

oter

sw

ithou

t Fac

ility

Publ

ic F

igur

es

Mus

ical

Inst

rum

ent

Man

ufac

turin

g

Musical Instrument & Supplies Store

Theater Companies

Dance Companies

Musical Groups & Artists

Other Performing ArtsCompanies

Promoters with Facility

Promoters without Facility

Public Figures

Musical Instrument Manufacturing


PERFORMING ARTS SNAPSHOT (2002) TOP 10 EMPLOYERS




1998

2002


49

49%9%

24%

1%2%1%

9%

1%3%0%

1%

Employment 9,465




Wage Growth 39.1%


Publishing & Printing represents 31.8% of Boston's total creative industry employment.

The Employee to Establishment Ratio for Publishing & Printing is 37:1

Top 10 Employers:Acme Bookbinding Company Houghton Mifflin Co.AOLTWBG INC MagazineBoston Globe Pearson Custom PublishingBoston Herald Phoenix Media CommunicationsCourse Technology Inc. Time Warner Trade Publishing

0

1000

2000

3000

4000

5000

Boo

k, P

erio

dica

l & N

ewsp

aper

Who

lesa

lers

Boo

k S

tore

s &

New

s D

eale

rs

New

spap

er P

ublis

hers

Perio

dica

l Pub

lishe

rs

Boo

k Pu

blis

hers

Oth

er P

ublis

hers

Com

mer

cial

Gra

vure

Prin

ting

Com

mer

cial

Scr

een

Prin

ting

Qui

ck P

rintin

g

Dig

ital P

rintin

g

Oth

er P

rintin

g

Book, Periodical &Newspaper Wholesalers

Book Stores/News Dealers

Newspaper Publishers

Periodical Publishers

Book Publishers

Other Publishers

Gravure Printing

Screen Printing

Quick Printing

Digital Printing

Other Printing


PUBLISHING & PRINTING SNAPSHOT (2002) TOP 10 EMPLOYERS




1998

2002


50

63%

16%

2%

0%2% 17%

Employment 486




Wage Growth 24.8%


Sound & Recording represents 1.6% of Boston's total creative industry employment.

The Employee to Establishment Ratio for Sound & Recording is 10:1

Top 10 Employers:Adaptive Networks Inc. Scully Signal Co.Bristol Recording Studios StrawberriesFantastic Transcripts Tape Transcription CenterNewbury Comics Video ExpressOfftech Video Transfer Inc.

0

50

100

150

200

250

300

350

ManufacturingMagnetic & Optical

Media

Tape, CD & RecordStores

Record Production Integrated RecordProduction and

Distribution

Music Publishers Sound RecordingStudios

Manufacturing Magnetic &Optical Media

Tape, CD & Record Stores

Record Production

Integrated RecordProduction & Distribution

Music Publishers

Sound Recording Studios


SOUND & RECORDING SNAPSHOT (2002) TOP 10 EMPLOYERS




1998

2002


51

59%

41%

Employment 425




Wage Growth 141.2%


Support Services represents 1.4% of Boston's total creative industry

employment.

The Employee to Establishment Ratio for Support Services is 12:1

0

50

100

150

200

250

300

Libraries & Archives Fine Arts Schools

Libraries and Archives

Fine Arts Schools

Top 10 Employers:Baker Library New England Conservatory-MusicBoston Athenaeum School of the Museum of Fine ArtsBoston Public Library Snell LibraryCommunity Music Center of Bos. Social Law LibraryMugar Memorial Library Thomas P. O’Neil Jr. Library


SUPPORT SERVICES SNAPSHOT (2002) TOP 10 EMPLOYERS




1998

2002


52

The primary data for this report are derived from a variety of sources:

Creative activity is calculated as part of existing national accounting schemes, using established industrial classifications;

Employment data, payroll, establishments and growth calculations are derived from the U.S. Census Bureau’s County Business Patterns 1998 and 2002, using the North American Industry Classification System (NAICS);

The County Business Patterns only lists payroll jobs. Data on self-employment within the “creative economy” are from the U.S. Census Bureau’s Nonemployer Statistics for 1998 and 2002;

Information on larger employers comes from the American Business International (ABI) database;

Data on Boston’s Colleges and Universities are from “Connection: Facts 2000,” New England Board of Higher Education;

Appendix VI: Technical Note

53

Estimates of the size of the non-profit arts industry nationwide are from “Jobs, Arts and the Economy,” published by Americans for the Arts, Washington D.C., 1994;

Impact estimates were generated using the REMI model - a regionalized version of the U.S. National Input-Output Model. In order to derive multipliers for Boston’s Creative Economy, a special run was performed by the BRA/Research team;

Between them, these sources offer the ability to draw a quite detailed picture of the “Creative Economy” in statistical terms;

Finally, current research publications, specialized reports, policy papers and academic studies related to the “creative economy” were reviewed.

Appendix VI: Technical Note (cont.)

54

Table of Contents:




IV. Appendices

V. Glossary

Creativity - The process by which ideas are generated, connected and transformed into things that are valued;

Cultural and Heritage Tourism - There are as many definitions of cultural and heritage tourism as there are reports on the subject. The most generally accepted definition uses the term as follows: Cultural and Heritage Tourism occurs when participation in a cultural or heritage activity is a significant factor for travelling;

Location Quotient (LQ) - The location coefficient measure employment concentration or specialization. It compares employment share (for a specific occupation or industry) in a place with their share in the national economy, MSA, etc.. The location coefficient will be less than one if a particular industry or occupation is under represented, and greater than one if they are over-represented;

Glossary:

56

Non-employer - A non-employer business is defined by the U.S. Census bureau as one that has no paid employees, has annual business receipts of $1,000 or more and is subject to federal income taxes. Most non-employers are self-employed individuals operating very small unincorporated businesses, which may or may not be the owner’s principal source of income;

North American Industry Classification System (NAICS) - The North American Industry Classification System was developed by representatives from the United States, Canada, and Mexico, and replaced each country’s separate classification systems with one uniform system for classifying industries - http://www.census.gov/epcd/www/naics.html

Glossary (I):

57

http://www.census.gov/epcd/www/naics.html

Number of Establishments - Generally, an establishment is a single physical location where business is conducted or services or industrial operations are performed. However, for non-employers we count each distinct business income tax return filed by a non-employer business as an establishment. A non-employer business may operate from its owner’s home address or from a separate physical location. Most geography codes are derived from the business owner’s mailing address, which may not be the same as the physical location of the business;

Glossary (II):

58