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Economic Development: The Public Benefit
Current Research

"A strong arts and cultural sector is vital to the future of New England's economic growth and competitiveness."

--The Creative Economy Initiative
A New England Council Report, June 2000

Creative Industries: Business & Employment in the Arts
Americans for the Arts (AFTA), (c) 2008

AFTA's yearly Creative Industries reports document business and employment data for both the for-profit and the non-profit arts industries in order to illustrate the scope and importance of the arts to the nation's economy. Users can search the 2008 reports by U.S. Congressional or State Legislative district.

The Creative Economy: A New Definition
New England Foundation for the Arts, (c) 2007

New England Foundation for the Arts (NEFA) and the six New England state arts agencies have partnered on region-wide research projects for 30 years to demonstrate the cultural sector’s economic force. Progressing from a series of paper surveys limited to the nonprofit sector to a thorough and demonstrative analysis of all types of organizations and individuals, this research has become the foundation for local and statewide efforts to build New England’s Creative Economy. NEFA has now refined its methodology for analyzing this important economic sector, and presents its rationale and recent findings in this report.

Key findings:
Massachusetts has a competitive edge in both cultural enterprise and cultural worker employment.

  • Massachusetts has the highest number of architects as a percentage of the total state workforce, the second highest number of designers, and the fourth highest number of artists in all disciplines.
  • Massachusetts has 15.5% more cultural workers than the national average, and 23.5% more artists.
  • Unemployment rate among cultural workers is 2% lower than the overall Massachusetts unemployment rate.

Arts & Economic Prosperity: The Economic Impact of Nonprofit Arts Organizations and their Audiences
Americans for the Arts, (c) 2002

In this expansive attempt to measure the national economic impact of non-profit arts organizations, data was collected in 91 communities across the country (including Gloucester, New Bedford, and Worcester) over several years. Detailed data from 3,000 nonprofit arts organizations from a diverse range of communities was collected under the direction of economists from the Georgia Institute of Technology.

Key findings:
America's nonprofit arts industry generates $134 billion in economic activity every year: $53.2 billion in spending by arts organizations and $80.8 billion in event-related spending by audiences.

  • This activity translates into 4.85 million full-time equivalent jobs and $89.4 billion in household income.

  • $6.6 billion in local tax revenues, $7.3 billion in state tax revenues, and $10.5 billion in federal income tax revenues -- a total of $24.4 billion -- is raised.

  • Event-related spending by audiences reflects an average of $22.87 per person for hotels, restaurants, parking, souvenirs, refreshments, and other similar costs, with tourists spending nearly twice as much as local attendees ($38.05 compared to $21.75)

  • Travelers who include cultural events on their trip travel longer, are more likely to shop, and overall, spend more than other U.S. travelers ($631 per person for cultural tourists vs. $457 for all tourists)

Creative Economy Initiative: The Role of the Arts and Culture in New England's Economic Competitiveness
The New England Council, (c) 2000

This landmark report defines arts and culture as an industry cluster in much the same way that other clusters are viewed. The report concludes that the Creative Economy-made up of both nonprofit and commercial organizations, as well as a significant population of individuals engaged in or trained in artistic or cultural fields-is an essential force in maintaining the region's economic competitiveness in the 21st century.

Key findings:
The Creative Economy is a fundamental component of the region's economy that demands increased focus, consideration, and investment by business leaders and government.

  • The creative cluster supports nearly 245,000 jobs in New England-nearly as many as the computer equipment cluster, and more than the software and healthcare technology clusters combined.

  • Workers trained in specific cultural and artistic skills drive the success of leading industries, including software development, telecommunications, and new media industries.

  • The creative cluster and its workforce have many of the professional qualities needed to compete in the New Economy, such as creativity and initiative, design and technical skills, advanced conceptualizing, and the ability to respond to rapid change.

  • Geographic concentration of creative workers, creative businesses, and cultural organizations enhance a community's quality of life-key to attracting and retaining businesses, employees, and visitors-and inspires downtown revitalization in both big cities and small towns.

Cultural Economic Development Projects: Impact Studies
Center for Policy Analysis, University of Massachusetts Dartmouth, 2002-2003

The University of Massachusetts Dartmouth Center for Policy Analysis conducted independent research to measure the economic impact of three separate projects funded through the Massachusetts Cultural Council's Cultural Economic Development Initiative from 2000-2003. While each of the three projects were quite different, each was successful in using increased participation in cultural activity to spur local and regional economic activity.

Key findings:
The local programs funded by the MCC stimulated economic activity, including new job creation, new business development, and additional sales at both cultural and non-cultural business.

  • Launched with an MCC grant of $11,500, Campus Provincetown's total economic impact was nearly $600,000 -- approximately $51 dollars generated for every state dollar spent in grant money. (See this study.)

  • Boston Cyberarts 2003 generated a regional economic impact of over $2.5 million and created over 32 full-time equivalent jobs, including many in the hospitality and professional services industries. (See this study.)

  • AHA! New Bedford had an economic impact of over $200,000 in 2001-2002, generated on nights with almost no economic activity in downtown New Bedford previously. (See this study.)
 
© Massachusetts Cultural Council 2008