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.)
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© Massachusetts Cultural Council 2008
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