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Creative cities in Latvia
Alise Vitola, Mg.oec.Riga Technical University
LATVIA
Poznan, 2010
(Dr., prof. Tatjana Volkova, BA School of Business and Finance)
Creative economyThe most successful economies and societies in the twenty-first century will be creative ones. Creativity will make the difference – to businesses seeking a competitive edge, to societies looking for new ways to tackle issues and improve the quality of life.(United Kingdom’s Creative Industries Mapping Document 2001)
Creative industries - those industries which have their origin in individual creativity, skill and talent and which have a potential for wealth and job creation through the generation and exploitation of intellectual property:
advertising, architecture, the art and antiques market, crafts, design, designer fashion, film and video, interactive leisure software, music, the performing arts, publishing, software and computer services, television and radio(United Kingdom’s Creative Industries Mapping Document 1998)
Creativity and economic growth
• Cultural and creative sector grows more rapidly than the general economy– In the years 1999-2003 sector’s growth was 12,3% higher than average growth in EU
economy – in the years 2002-2004 employment in this sector grew by 1,85% whereas total
employment in the EU decreased
• Culture and creativity contributes a lot to local development – the goods produced in these industries are closely related to local audience and culture
and therefore can not be easily off-shored– culture and creativity helps to attract high qualified work force, investment and tourism
thus boosting local economy– culture and creativity contributes to social and territorial integration
• R. Florida’s three T’s economic growth theory argues that the main driving forces for economic growth are technology, talent and tolerance– creative class and talent: people that are well educated and deal with creative or
conceptual tasks in their professional life
The study• Hypothesis: cities in Latvia with higher share of creative class and
talent develop more rapidly than the others
• Object: 10 major cities of Latvia – Riga (capital city), Daugavpils, Liepaja, Jelgava, Jurmala, Ventspils, Rezekne, Valmiera, Jekabpils and Ogre
• Methodology: analysis of correlations between creativity incdicators and socio-economic development rate and level indicators
• Data: local level statistics in 2005-2009 (very limited!), data array of Questionnaire of Labour Force Survey in 2006 (N=20025)
The indicatorsCreativity indicators - defined by R.Florida, adjusted to avaiable data
Talent Index and it’s subindexes:•Creative Class Subindex - proportion of scientists, engineers, artists, musicians, architects, managers etc.•Human Capital Subindex - proportion of inhabitants with tertiary education•Scientific Talent Subindex - number of employed in life, physical and social science occupations per thousand inhabitants •Bohemians Subindex - number of employed in arts, design, entertainment and sports occupations per thousand inhabitants
Socioeconomic development indicators – defined by author
•Development Rate Index and it’s subindexes (show 5 years average increase / decrese) - Personal Income Increase Subindex, Unemployment Decrease Subindex and Number of Inhabitants Increase Subindex •Development Level Index and it’ s subindexes (show 5 years average level): Personal Income Level Subindex and Unemployment Level Subindex
All indexes are based on a 10 point scale where the best performing territory is assigned maximal (10) points and the points of other territories reflect their ratio to the best performing territory
The results: socioeconomic development
Jurmala Ventspils Jekabpils Valmiera Jelgava Ogre* Daugavpils Riga Liepaja Rezekne0
2
4
6
8
10
12
10
8.17.7 7.7 7.4 7.4 7.1 7.1
5.1
4.0
10
7.8
9.7
7.8
10
7.1
8.38.7
5.2
7.9
6.8
9.1
4.65.4
3.3 3.3
10
5.9
2.6
0.3
10
4.7
6.2
7.36.5
9.3
0.8
4.4
5.7
2.6
Development Rate Index Personal Income Increase Subindex Unemployment Decrease Subindex Number of Inhabitants Increase Subindex
Most rapid growing cities are Jurmala and Ventspils ..
Riga Ventspils Jurmala Valmiera Ogre* Jelgava Daugavpils Liepaja Jekabpils Rezekne0
2
4
6
8
10
12
10
8.9 8.8 8.7 8.6 8.5
6.9 6.66.1
5.7
10
8.9 9.3 9.18.4 8.2
5.5
6.45.9
6.6
10
8.98.3 8.4 8.7 8.8
8.3
6.7 6.3
4.8
Development Level Index Personal Income Level Subindex Unemployment Level Subindex
.. the most developed cities in Latvia remain Riga, Ventspils and Jurmala
The results: creativity
Ogre* Riga Jurmala Daugavpils Jelgava Rezekne Ventspils Liepaja Valmiera Jekabpils0
2
4
6
8
10
12
109.2
7.36.6 6.6
5.4 5.4 5.14.4 4.2
10 109.4
7.7
8.6
6.0
7.0 7.47.9 8.3
109.4
7.3
5.9 6
5.0 4.9
6.06.4
4.2
7.7
10
4.8
8.6
5.4
8.2
6.5
1.3
2.4
0.0
10
5.56.2
2.7
4.7
1.21.9
4.7
0.0
3.4
Talent Index Creative Class Subindex Human Capital Subindex Scientific Talent Subindex Bohemians Subindex
•The most overall talented cities are Ogre, Riga and Jurmala•The highest share of creative class is in Ogre (33,8%), Riga (33,3%), Jurmala (31,7%) and Jelgava (29,2%)•The highest share of human capital is in Ogre (25,3%), Riga (23,8%), Jurmala (18,6%) and Valmiera (16,2%)•The highest share of scientific talent is in Riga (23,9 per th inhabitants), Daugavpils (20,6), Rezekne (19,6) and Ogre (18,5)•The highest share of bohemians is in Ogre (32,4 per th inhabitants), Jurmala (20,0) and Riga (17,9)
•With an exception of Daugavpils, most talented and creative cities in Latvia are located in the economical centre of Latvia - Riga and it’s commuting area with radius of 50 km
The results: correlationsCreativity /
development measures
Develop-ment Rate Index
Personal Income Increase Subindex
Unemploy-ment
Decrease Subindex
Number of Inhabitants
Increase Subindex
Develop-ment Level Index
Personal Income Level
Subindex
Unem-ployment
Level Subindex
Talent Index 0,207 0,058 0,047 0,241 0,562* 0,464 0,575*
Creative Class Subindex 0,594* 0,329 0,131 0,609* 0,659** 0,543 0,677**
Human Capital Subindex 0,213 -0,094 -0,032 0,411 0,651** 0,596* 0,606*
Scientific Talent Subindex -0,107 0,059 0,192 -0,399 0,344 0,272 0,365
Bohemians Subindex 0,252 -0,006 -0,143 0,542 0,314 0,236 0,345
* with 0,10 significance; ** with 0,05 significance
•Most talented cities do not develop more rapidly than the others but →•Cities with higher the share of creative class do have higher socioeconomic development rate
•The number of inhabitants in cities with higher share of creative class grows more rapidly or declines in a slower rate → creativity attracts residents!•More talented cities, especially in terms of the share of creative class and human capital, have higher overall development level and lover unemployment level
•Cities with higher share of talent and creative class have higher income level
