Growth in creative economies not dependent on high population of creative people
Contact: Todd Gabe, associate professor of Resource Economic and Policy, 207-581-3307, todd.gabe@umit.maine.edu
Clinton Colmenares, UMaine University Relations, 207-581-3742, clinton.colmenares@umit.maine.edu
Regions with fastest growth in people hadslowest growth in jobs
ORONO, Maine — New economic data from the University ofMaine give hope to cities across the country trying to gain a foothold in thecreative economy.
Growth in creative economy jobs expanded rapidly in someparts of the country between 1999 and 2003 despite modest regional growth inthe population of creative individuals during the 1990s. On the other hand,some cities that experienced a large growth of creative people over that decadesaw some of the slowest rates of growth in actual jobs in the creative economybetween 1999 and 2003.
This contradicts conventional wisdom that suggests companiesemploying creative workers follow the migration of creative talent, says ToddGabe, associate professor of Resource Economics and Policy at UMaine. “Thesedata show that cities don’t need a strong initial presence in the creativeeconomy to have job growth in later periods,” says Gabe.
Creative economy growth in Maine’s three largest cities alsofits that pattern. Portland ranked 59thnationally in terms of the growth of creative talent during the 1990s, but fellto 136th in job growth between 1999 and 2003. Bangor andLewiston-Auburn fared very well in job growth (30th and 26thnationally) over these four years following a decade when they ranked near thebottom (174th and 118th nationally) in terms of theattraction of creative talent.
The “creative economy” has received much attentionrecently as U.S. workers see jobs in traditional industries dry up and otherjobs move overseas. The concept, popularized by economist Richard Florida,suggests that America’s workforce advantage lies in our ability to solveproblems, forge new frontiers, and quickly adjust to changing economic forces.Creative occupations include engineers, educators and scientists as well asthose involved in the creative arts, entertainment and professions such asarchitecture.
Florida’s data show that people who work in creativeoccupations earn an average of $20,000 a year more than those in non-creativejobs. Other studies have remarked on the connection among the creative economy,entrepreneurship, tourism and high technology growth.
In his analysis of census data on 200 U.S. metropolitanareas, Gabe found that the Rocky Mountain, Southeast and Southwest regions hadthe largest growth of creative talent between 1990 and 2000. However, U.S.employment statistics between 1999 and 2003 show that many cities in thoseregions saw the slowest growth of jobs in creative sectors.
The New England region did not top the list in terms of growthin the number of people with creative skills during the 1990s, yet itexperienced the highest rate of creative-economy job growth between 1999 and2003.
Gabe’s study, to be published in an upcoming issue of theacademic journal Growth and Change, offers a look into trends ofdispersion in the creative economy.
“Across regions of the U.S., some types of industriesand sectors become more and more concentrated over time when areas that startwith an initial stronghold grow faster than those starting from scratch,”Gabe says.
However, his findings suggest that the creative economybecame more dispersed over the time periods analyzed. “This begins tochallenge the commonly held belief that clustering enhances growth of thecreative economy,” Gabe added.
Of the 200 U.S. metropolitan areas considered, the hottest spotfor the creative economy was Midland-Odessa, Texas, which had the highestgrowth rate of creative talent during the 1990s and ranked at the top ofemployment gains. However, the Sarasota-Bradenton, Fl., area had the second-fastestgrowth in creative people over the decade, but ranked near the bottom in termsof job growth in creative occupations between 1999 and 2003.
“Sarasota — along with several other Southern cities –provides a good example of places that had strong growth in the number ofcreative individuals that did not translate into high job growth in a laterperiod,” Gabe says.
In his future research, Gabe hopes to gain a betterunderstanding of the local factors that foster creative economy growth. “Policymakers around the world have embraced Richard Florida’s ideas, and are searchingfor ways to attract and maintain creative talent,” Gabe says. “Thisis especially true in America, where cities have been competing over economicdevelopment for decades. This study and others are necessary to inform localinitiatives and help policymakers track their success.”