UMaine Economist Says Technology Key to Creative Economy Success

Contact: Todd Gabe, (207) 581-3307; George Manlove, (207) 581-3756

ORONO, Maine — Policymakers hoping to lift wages in Maine through the “creative economy” should consider focusing their efforts on computer specialists, engineers and scientists, according to new research by University of Maine economists.

Economist Todd Gabe and colleagues Kristen Colby and Kathleen P. Bell of the School of Economics recently coauthored two studies on the “creative workers” profiled in Richard Florida’s popular book “The Rise of the Creative Class.” The research provides strong evidence that the economic development benefits from the creative economy are driven largely by the use of technology.

“People have taken Richard Florida’s work to heart and are starting to think about ways to bolster the creative economy,” Gabe says. “But it is rare that I see creative economy initiatives with a strong emphasis on technology-based workers and industries.”

The researchers examined the effects of the creative economy on regional earnings, and also looked at differences in the creative economy between urban and rural U.S. counties.

“The question we grappled with is the extent to which creative workers affect earnings in a region,” Gabe says. “Both studies show that creativity enhances earnings, but when you remove technology from the equation the effect disappears.”

The research also shows that U.S. rural areas lag way behind cities in these important segments of the creative economy. Controlling for other factors, the study finds that almost 12 percent of the U.S. rural-urban wage gap is explained by differences in the creative economy.

These findings provide challenges for rural states such as Maine.

“There’s no easy answer. We need more workers trained in these areas, as well as more technology-based companies to provide employment opportunities. Current creative economy initiatives supporting the arts should not be an end, but a means to grow technology in the state,” Gabe concludes.

The study on rural-urban differences in the creative economy will be published in an academic journal later this year.