October 22, 2008

Overview of Creative Class and the “3Ts”

Kevin Stolarick, PhDResearch Director

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What is the “Creative Class”?

What is the Creative Class?

What You Do (Job Occupation) vs.

Where You Work (Industry)

10 Year Job Growth Estimate• Working Sector 10%• Service Sector 14%• Creative Sector 20%

Who Works in Creative Class?

Creative Class: TAPE

T = Technology and R&D InnovationA = Arts and CultureP = Professional and ManagerialE = Educating and Training

Why Occupations?Among all people who either work in the IT industry or work in an IT occupation (or both):–50.2% work in an IT occupation but not in the IT industry–25.7% work in the IT industry but aren't in an IT occupation–Only 24.1% work in an IT occupation in the IT industry

IT IndustryIT Occupations

The Rise of the Creative Class

The Rise of the Creative Class

U.S. Creative Class Economy

Creative Service Working

Workers (Talent) 40,379,520 59,769,270 31,949,350

% of Workforce 30.5% 45.1% 24.1%

% of Wages 48.8% 30.4% 20.6%

U.S. Creative Class

•30 (% of the workforce)•40 (million people)•50 (% of the wages)•70 (% of the discretionary income)

Canada & Ontario’s Creative Economy

Creative Service Working

Canada

Workers (Talent) 4,874,885 5,788,767 3,333,726

% of Workforce 35.5% 38.7% 23.0%

Ontario

Workers (Talent) 2,027,152 2,210,604 1,311,995

% of Workforce 33.2% 39.4% 22.7%

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The “3Ts” of Regional Growth

The “3Ts”

Technology

Regional Growth

Technology“A high technology base is both a necessary condition for and a result of a region having a strong creative economy.

Being known as a "high-tech" region helps to attract the creative workforce, which, in turn, generates new technologies making the region even more high-tech.”

Technology• High Technology:–Concentration of high-tech

companies–Growth of high-tech companies

• Innovation:–# of patented innovations per

1,000 people–Growth in patented innovations

The “3Ts”

Talent

Technology

Regional Growth

Talent“The concentration of people in the Creative and Super Creative Classes, has a stronger relationship with economic growth.

Creative people don't just cluster where the jobs are. They cluster in places that are centers of creativity and also where they like to live.

Places need a people climate -- or a creativity climate -- as well as a business climate.”

Talent• Talent Index

(Bachelors Degree and above)

• % Super Creative (scientists, engineers, artists, musicians, designers)

• % Creative Class (super creative + professionals)

The “3Ts”

Talent

Tolerance(Inclusiveness)

Technology

Regional Growth

Tolerance / Inclusiveness“Diversity has become a politically charged buzzword. To some it is an ideal and rallying cry, to others a Trojan-horse concept that has brought us affirmative action and other liberal abominations.

Creative Class people use the word often, but not to press any political hot buttons. Diversity is simply something they value in all its manifestations.”

Tolerance / Inclusiveness

• Melting Pot Index (% foreign born)

• Gay/Lesbian Index (% gay & lesbian population)

• Boho Index (% culturally creative)

• % Nonwhite & Non-black• % Interracial Marriage• Integration Index• Composite Diversity Index (CDI)

The “Fourth T”

Talent

Tolerance(Inclusiveness)

Technology

Territory Assets(Amenities)

Regional Growth

Territory Assets“What Creative people look for in communities are abundant high-quality amenities and experiences, an openness to diversity of all kinds, and above all else the opportunity to validate their identities as creative people.

Places are valued for authenticity and uniqueness … Authenticity comes from several aspects of a community … It comes from the mix … Authenticity is the opposite of generic.”

Territory Assets (Quality of Place)• Economy/Growth• Housing• Culture• Climate• Education• Healthcare• Recreation• Dis-amenities

– Crime, Weather• Transportation

– Connectedness

The “4Ts”

Talent

Tolerance(Inclusiveness)

Technology

Territory Assets(Amenities)

Regional Growth

Creativity Index“The key to understanding the new economic geography of creativity and its effects on economic outcomes lies in the 3T's of economic development: Technology, Talent, and Tolerance.

Each is a necessary but by itself an insufficient condition: To attract creative people, generate innovation and stimulate economic growth, a place must have all three.”

Creativity Index

• Technology

• Tolerance (Inclusiveness)

• Talent

The “4Ts”

Talent

Tolerance(Inclusiveness)

Technology

Territory Assets(Amenities)

Regional Growth and

Prosperity

Prosperity

Successful regions are not just growing …They do no just build wealth …

Successful regions arePROSPEROUS

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Defining “Prosperity”

ProsperityThe condition of being prosperous, successful, or thriving; good fortune, success, well-being, wealth.

ProsperousHaving continued success or good fortune; consistently successful, esp. economically; flourishing, thriving.

Oxford English Dictionary

Dimensions of Prosperity

• Growth• Wealth/Money• Welfare–Education–Healthcare–Wellness/Health

• Productivity• Taxes• Social Contract• Equality/Affordability• Inclusiveness

• Environment/Green• Participation / Social Capital• Achieving Potential• Happiness/Satisfaction• Magnetism• Competitiveness• City Size• ∆’s (changes over time)• Cultural/Arts Measures• Sustainability• Others?

For More Information

•Richard Florida’s books– “The Rise of the Creative Class”– “The Flight of the Creative Class”– “Who’s Your City?”

•www.martinprosperityinstitute.org

•www.creativeclass.com

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October 22, 2008

Thank YouKevin Stolarick