EconPapers: Economy and Art: Why are Economy and Art Closely Linked?
Cultural economics, or the Economics of the Arts, is generally thought to have The painting represents symbolically the relationship of papal patronage of. As a result, the questions arise: What is art? What is the relationship between art and economy? Is there a practical way for artist to be famous and rich at the. PDF | Culture manifests itself in everything human, including the ordinary business of everyday life. Culture and art have their own value, but.
Fortunately, regression analysis can be used to accomplish that. When conducting any regression analysis, it is important to look outside of the variable you care most about. Doing so allows you to consider the other variables that may be affecting the variable you are targeting. In this case, that variable is economic growth. We could get a lot more in-depth on this issue, but for the sake of simplicity only six other factors are considered in this data analysis.
There’s a link between art and economics that often goes unnoticed… - Study International
Our statistical model still indicates that artsy-ness has a positive affect on economic growth, but the relationship is not strong enough to state the degree of connection with any level of confidence 5. The model indicates that some factors have a very positive influence on economic growth, such as high educational attainment and being located in the southeastern region of United States.
There is also one factor that has a very negative effect on economic growth, namely, being located in the northeastern United States. What all this indicates is not that artsy-ness is irrelevant to economic growth, rather that there are other factors that are more impactful, such as geographic location and educational attainment rates.
However, at this point, it is worth considering the options local organizations have for stimulating economic growth. Picking up a city and re-depositing it in a southeastern location, like Texas, is certainly not an option.
Increasing educational attainment is possible, but likely an expensive one. On the other hand, supporting and promoting an existing arts culture is something within the reach of nearly any organization interested in stimulating growth. The regression model indicates that not every city with strong growth has a strong artistic culture, but there certainly are some cities that have made arts a significant pillar of their growth strategies.
A few of these cities are highlighted below. Paul metro area has successfully integrated a booming arts and culture scene with a strong degree talent recruitment, which is necessary to feed the numerous large companies in the area.
The region has an above-average CVI value of 1. The region has actively highlighted the vibrant cultural atmosphere to attract people and companies to the area. Numerous independent artists are in the process of mapping out the creative strategy of the region, which can be seen at www. The City of Minneapolis also sponsors several placemaking collaborations.
The city has leveraged its arts culture into attracting talent to the area. Nashville Nashville has leveraged its musical history and art scene as major tools for recruiting talent to the region.
The success of this effort is indicated by its CVI value of 2. Nashville also serves as an interesting counterpoint to other cities that have seen strong economic growth, in that there is not an unusually high proportion of college-educated people.
Conclusion A thriving arts culture is one component that talented millennials value when looking for a place to live. Regions everywhere are pursuing developing-sector and cluster-based strategies aimed at retaining and attracting more of the types of businesses that they want.
The health of our future cities relies on creating an innovative, beautiful, and thoughtful environment that people want to live in. In the most recent years of this period the growth rate was a bit more than one percent lower: Of the three subsectors, growth has been strongest in arts and cultural heritage, with 4.
An important reason for the high growth rate in arts and heritage, is the increase in registered jobs in the performing arts and visual arts, largely as a result of the compulsory registration since of freelance creative workers, many of which were not previously registered with the Chamber of Commerce. This has led to an inflated short-term growth rate.
The bright side is that we are now able to gain a clearer understanding of the true magnitude of these art practices. The lowest growth rate was noted in the media and entertainment industry: The last three years have even shown negative growth. Creative business services have been growing on average 3. Within the creative industries, the gaming sector is showing strong growth. Statistics Netherlands and the Chamber of Commerce have recently added a category for gaming. The registration of businesses and jobs in this category is still under development and therefore incomplete.
Still, we have included in table 1 for the sake of completeness the statistics for gaming and other publications. There is, incidentally, no indication that a similar situation might also apply for other categories. From to there was an average annual increase of 8. This percentage is much higher than the percentage of creative industry jobs within the total number of jobs in the Netherlands 3.
This is because the average number of employees in creative industry businesses is much lower than the national average. This characteristic small scale is due to the high number of freelancers and small operations; there are very few businesses and institutions in the creative industries with more than 50 employees. Of the three subsectors, arts and heritage has the smallest average number of employees per business or institution. The creative industry's total revenue grew on average 1.
The growth of the creative industry's total revenue 1. This is due to a number of factors, such as the fact that much of the growth was realised in the arts sector, which is characterised by a relatively low revenue per job.
The productivity in media and entertainment is thus markedly higher than in the other two subsectors Rutten, Koops and Nieuwenhuis a, pp. However, in more recent years the emphasis has shifted toward the broader economic and social impact of the creative industries: In this economy, the human ability to create value based on new concepts and ideas is seen as the main driving force behind increasing prosperity; most of the added value is realised through goods and services which relate to the experiences of consumers and respond intelligently to broad social needs and requirements cf.
In this context, the creative industries are increasingly perceived as an important motor for competitive strength and innovation; consequently, the contemporary debate sees here the main value of creative activity, a trend described as the turn towards innovation see also: Rutten, Manshanden, den Blanken and Koops ; D.
Creative industries contribute to innovation, by giving concrete shape to the possibilities offered by new systems and technologies, and by linking these to broad social needs, through processes such as visual representation and design. Creative professionals develop new ideas and create designs focused on current and future needs of representation and experience, but also on practical applicability and useful social value.
In principle, this practice applies to a broad range of economic and social domains. Knowledge and understanding of trends, culture and lifestyles are essential requirements for offering attractive and competitive products.
This type of creativity is not only important for the development of new products and services, but also for their positioning and marketing. Since in many cases the functionality of these goods and services has already been optimised, competitive advantage can only be realised by making connections with intangible meaning and cultural value. The combination of both types of activities, the development of new products and services based on the appropriate creative inputs, and the connection of goods and 9 services with experience value, are all essential ingredients for innovation in the creative economy D.
This has led several researchers and theorists to conclude that the creative industries are in fact becoming an integrated component of the innovation systems of contemporary economies, rather than merely an economic sector enjoying above-average growth rates. Therefore the creative industries clearly require specific and focused attention from policy makers. Fortunately, there has been an increasing interest and activity in recent years toward research concentrating specifically on this role of the creative sector in the economy and society at large see for example: The presumed special role of the creative industries can be clearly demonstrated by examining the function of design as a specific branch of creative business services.
Good design, and therefore good designers, are essential for the market success of products and services; not only in providing an aesthetic finishing touch, but also in contributing creative input to design processes, from the earliest phases of the development of goods and services.
Of course, the economic value of the fashion sector goes far beyond design; the production, distribution and retailing of clothing all contribute value as well. Still, design remains the key to this value.
Also noteworthy is the important role played by designers in connecting the fashion sector with the domain of new materials.
Based on their user-oriented perspective and their knowledge of current social trends, designers provide valuable input to businesses developing new materials for use in clothing. There are a number of ongoing developments, in traditional fabrics and textiles as well as in the field of new fibres and materials.
One of the roles of designers is to make connections between parts of the chemical sector and the fashion industry. In the automobile industry as well, design is now the determining factor. The technical specifications of the various brands and types are increasingly similar; distinction is created through design, image and identity, which is precisely where the competences of designers and brand specialists come into play.
The role of advertising and communication in the economy is thus comparable to that of design. Professionals in these disciplines create value, by defining specific positions for organisations and businesses within the field of public opinion, and by guiding the launch of new products and services and consolidating the position of existing ones.
A recent development in this sector has seen advertising agencies functioning as strategic branding and positioning advisors to businesses, a clear indication of the importance of these competences in the development and success of businesses Bilton The creative industries are moving toward the heart of the creative economy.
As a result of this development, products in an increasing number of markets are now chiefly defined by their design and their brand. Consumer electronics and information hardware are a clear case in point. In the market for media and IT services, the boundaries between technology, design, and even content are becoming increasingly blurred.
The best example of this is Apple, the most successful business of the past decade. Apple has demonstrated the crucial importance of design, even more than Sony previously did with a number of groundbreaking concepts in the electronics industry. Now it seems as though Apple is already losing ground in this respect to Samsung. The almost symbiotic relationship between information and communication technology on one hand, and creative industries on the other, can be explained by the central role of language and information in both domains.
The products of the creative industries are basically immaterial: Creative industries almost always make use of newer or more traditional information and communication technology ICT.
The newest forms of ICT include digital networks and various forms of information processing software. Innovation in the creative industries closely follows developments in information and communication technology, and in some cases also vice-versa. Just as printing technologies once paved the way for book and newspaper publishing, the development of the Internet and new digital technologies is now responsible for an extensive restructuring of the media industry including the emergence of new segments such as the gaming sector as well as profound social transformations.
Creative industries are at the forefront of this development, precisely because the sector in fact thrives on the development and exploitation of information and symbols, of lifestyle and representation. As a consequence, it is often unclear whether some businesses, including global players such as Google, Apple and Amazon, should be classified as ICT or creative industries. TomTom facilitates and exploits access to information, thus functioning in many respects as a publisher.
In the virtual domain, new creative concepts can be very rapidly scaled up to a global level. In the virtual creative industries, the role of local markets plays a much smaller role than in the material creative sector. The catalysing effect of creative industries on the rest of the economy is not limited to creative business services, which include design, advertising and communication.
In the media and entertainment industry as well, products, services and competences are being developed which can be applied within the economy at large, and which add lifestyle value to more generic products and services, by providing them with symbolic qualities based on the gravitational attraction of products and personalities from the world of popular culture Wolf Serious gaming is another example of how new applications developed within one subsector add value to another sector.
Games, which first originated as entertainment products, are increasingly being applied in communication and information strategies, as well as in health care, where the use of specialised games in medical rehabilitation processes has met with some very interesting results indeed. Also the domain of the arts, particularly artistic research, is providing contributions to broader social and even economic developments. In the current practice of art and technology labs, artists ask questions such as: How are we living?
How do we wish to live? These questions are then the subject of a creative and research process, in which technology is deconstructed and reconstructed: Creative works resulting from this practice call into question existing practices, and provoke new discussions and debates.
Media labs thus aim to deconstruct technology from a social or aesthetic perspective, showcasing technological development processes which otherwise might have remained undetected from the dominant design perspective. This in turn allows for the development of possible alternative processes, for the benefit of social values, targets and applications which otherwise may not have been explored.
This way, media labs offer alternative and often superior uses of the social possibilities offered by technology; art provides the fundamental research for the creative industries, in much the same way as scientific laboratory research does for industrial innovation.
In the United Kingdom, the connection between 12 A challenging new development in this respect is 3D printing, discussed by Peter Troxler elsewhere in this volume.
Rinnooy Kan, Rutten and Stikker In the Netherlands, such a connection has yet to be established. The potential demonstrated in all the above examples manifests itself in the role currently attributed to the creative industries in providing solutions to broad social challenges, for example in the fields of sustainability, mobility and health care.
The European Union refers to these as grand societal challenges which are crucial to the future of societies on our continent. Such challenges require integrated responses, rather than purely technological solutions; there are cultural values at stake, requiring an approach in which the creative industries will be called upon to play an important role see also: Amerika ; Topteam Creatieve Industrie Talent for the creative economy The developments I have described above, all have direct implications for government policy on art and culture, particularly policy regarding creative industries, but also for the curriculum of educational institutions, and for research focused on the creative economy.
The perspective is shifting, from the magnitude and growth of the sector itself, toward the broader catalysing effect of the creative industries on social and economic innovation. The crucial question is now: This question directly addresses the promise of the creative economy, in which creativity is the motor of innovation and development.
This implies a greater emphasis on creative talent, rather than creative businesses, since it is the individuals working in creative professions who play a crucial role in realising the intended catalysing effect.
How Do the Arts Affect Economic Growth? | Creative Vitality Suite
Therefore, research and policy should concentrate increasingly on the connections relations and interactions, networks and interfaces, and of course their effectiveness between these creative professionals and the fields of application in which they function.
This is also a crucial development for education programmes focused on the development of talent for the creative industries. Many designers work in specialised agencies which take on commissions from third-party clients; in this respect they clearly work within the creative industries.
However, an even greater number of designers work in organisations which do not fall under the creative industries: For these organisations, fulfilling design needs using in-house personnel proves to be a better strategic option than purchasing these designs on the market, from design agencies. It is estimated that two thirds of all designers in the Netherlands work for businesses outside the creative industries see: Therefore these professionals are not counted in the statistics of researchers investigating the creative industries, even though they are an important factor in the creative economy, and their activities are crucial in determining the value of creative competences as a driving force for innovation.
As long as the research was still focused on determining the magnitude and scope of the creative industries, there was no urgent need to gain a clear understanding of the presence, range and significance of creative talent operating outside the creative industries. However, the focus is now clearly shifting towards the catalysing social effects of creativity, as a motor for innovation, competitive strength and quality of life; conversely, there is now a decreased interest from this perspective on the numbers of individuals working in a non-creative capacity within the creative industries, but who are currently still included in statistics on the creative sector.
These include financial managers as well as office and catering personnel. Employment 12 statistics in businesses with a large number of facilitary jobs relative to the number of creative jobs, are now indiscriminately counted along with businesses employing a relatively high percentage of creative professionals. An example of a sector belonging to the first category is amusement parks, which are part of the leisure industry.
Most employees in this sector are facilitary staff, ranging from ice-cream vendors to attraction attendants; all these workers are counted as part of the creative industries, alongside employees of businesses with a high number of creative professionals.
These include various creative business services, architects, designers and advertising and communication services, where forty to fifty percent of employees are creative professionals. Statistics Netherlands has compiled a provisory list of creative professions a selection from the more than creative professions officially recognised in the Netherlandsin an effort to measure the extent of the creative sector industries from this perspective as well see: Urlings and Braams According to this list, there were more thancreative professionals in the period from toboth within and outside the creative industries.
By comparison, there were aboutjobs both creative and facilitary in the creative industries in the Netherlands in Rutten, Koops and Roso b. In the United Kingdom, by comparison, Higgs, Cunningham and Bakhshi determined that inthere werecreative jobs outside the creative industries, in addition to the 1. In other words, creative skills and competences specific to the creative industries are firmly embedded in the British economy as a whole. Recent research by Rutten, Marlet and van Oort on creative talent in the greater economic region of Amsterdam, has shown how various creative sectors are deeply integrated in the regional economy.
An important indicator is the migration of talent between businesses from various sectors within and outside the creative industries: This is only possible in a situation which stimulates the spillover of knowledge, through mobility of creative talent, from the creative industries towards the rest of the economy.
Therefore, the conditions necessary for the creative industries to function as a catalyser for innovation in the creative economy are clearly present. Further research will be needed in order to gain deeper insight into such processes. There is a parallel between the shift of direction in research, which is required in order to gain a clearer understanding of the workings of the creative economy, and a similar necessary change in policy.
- There’s a link between art and economics that often goes unnoticed…
- Economy and Art: Why are Economy and Art Closely Linked?
Creative industry policy currently focuses mainly on businesses, which are still perceived as the most important actors in the creative and innovative economy.
However, there is a clear need, in the context of creative sector policy, for a shift of emphasis toward the role and significance of creative talent, and the embedding of this talent within the economy at large, particularly when one considers the promise of the creative economy. Education clearly plays a key role here. This can take place in the context of a freelance practice, a creative industry business, or other businesses and organisations which have chosen to employ creative professionals.
This is the broad framework in which the creative economy is gaining its momentum, and in which institutions such as the Willem de Kooning Academy will continue to play a crucial role.
According to Florida, the development of the high-tech knowledge economy requires talent 13 which can proactively give shape to innovation. This talent is what he refers to as the creative class: Members of the creative class share a common ethos in which creativity, individuality, quality and a keen sense of judgment are highly valued.
The creative class can be found in a variety of professions: This core plays a key role in generating new ideas, techniques or content, in science and technology, architecture and design, education, art, music and entertainment. These creative professionals are able to solve complex problems, which requires independent judgment.
They are often, though not necessarily, highly educated. A region with a high concentration of such talent becomes a magnet for innovative businesses. Florida accurately observes that jobs i. In the industrial age, workers flocked towards factories; in the creative economy however, high-end service and technology businesses choose locations close to pools of talent, which are generally concentrated in metropolitan areas cf.
Conversely, professionals from the creative class choose an attractive, usually urban living environment, and then look for a job in that area. In other words, the talent that shapes the creative economy thrives in a liberal, artistically rich and tolerant environment.
In order to attract and hold on to the creative class, a city must offer its residents a rich cultural life. This is usually provided by the creative industries, particularly in the case of cultural activities which are consumed on location: Art in public spaces is also an important factor in this equation. Art, culture and creative industries thus indirectly stimulate innovation in addition to the previously described catalysing effect of creativity by fostering environments in which creative talent, which is in a position to contribute to urban economic development and innovation, feels at home.
Additionally, Florida recognises the direct value of creative talent for innovation; this is why he considers artists, designers and creative professionals from the media and entertainment industry as an integral part of the creative core. The often conspicuous presence of creative talent in the city is also an important factor in this respect. Creative individuals often work in the city centre, where they frequent coffee and lunch bars; here they meet, cultivate their professional networks, and keep in touch with the pulse of the city, always an important source of inspiration.
Thus Florida highlights the economic value of culture and creativity for the city: This in itself should give us another excellent reason to leave behind the old dichotomy between culture and economy. The British urban planner Charles Landry has addressed in various publications the value of creative talent and creative industries for urban development. Cities are not merely systems consisting of multi-layered economic grids and logistical infrastructures; a city also requires an identity, and needs to cultivate norms and values in line with its historical development, in order to define and maintain its internal consistency.
Landry calls for a form of urbanisation which is based on creative production and local identity, in which the material and immaterial culture of a city are deployed to maximum effect; an approach which not only combines, but also integrates, social and economic development cf.
Important factors in this approach are the promotion of the cultural products of the local creative industries, and a focus on cultural participation. Such participation enriches and empowers individuals, for example by providing them with knowledge and cultural capital, which also yields value in other domains of human coexistence.
Naturally, creative industries play an important role here. Landry emphasises to a greater degree than Florida the social importance of creativity and culture. In this respect, many cities have seized upon the new interest in creative industries and the creative class as a starting point for urban redevelopment, for example in the re-use of industrial monuments as office and industrial space for creative businesses.
As the American urban planner Jane Jacobs once said: This way, culture and creative business development play an important role in the redevelopment of neighbourhoods. Conclusion In this essay, I have shown how the professional context for graduates of art education programmes is currently in a state of profound transformation. This applies to independent practitioners, to those who tend to formulate their mission in social terms, as well as those who seek a career in more applied creative domains such as design, digital media and advertising.
The contemporary situation is by no means clearly defined; graduates of art education programmes such as those offered by the Willem de Kooning Academy currently have a great deal of options to choose from, all made possible through the keen interest of society at large for the possibilities of creativity.
However the Dutch government, particularly on the national level, seems to be in a state of confusion as to how this creative potential can best be stimulated and deployed in our society. As a result, many opportunities are simply being wasted.
On one hand this government shows, at least in words, a great deal of interest in stimulating the development of the creative industries, for the greater benefit of social and economic innovation. However, the same government also chooses to starve the sector by cutting back on public funding for art, culture and public broadcasting. The extensive productive contribution, in both social and economic terms, of these foundational elements of the creative industries is thus insufficiently recognised, as I have previously described in detail.
Subsidising creative activities which do not generate direct revenue demonstrably yields long-term benefits, which are insufficiently appreciated in the current political discourse on art and culture, but rather seen as a wasteful luxury that only costs money. Ironically, professionals in the sector itself hardly contradict this narrative, except from the perspective of their own wish to defend their publicly financed sanctuary, in which economic factors play only a very marginal and diluted role.
In a directly related development, the strict rhetorical division between markets and governments is clearly and increasingly untenable; yet this dichotomy persists to this day in national politics and 15 policy. Precisely in the domain of art and culture we can observe a mixed economy, in which the government along with other parties invests but also reaps the benefits, through tax revenues which are a direct result of successful creative institutions and businesses, which can develop and expand due to factors such as government efforts in the creative field.
The resulting positive social results, such as participation in the work process as well as innovative urban environments with a high quality of life and an innovative economy, should more than justify the public investments.
Of course, such investments need not necessarily be in the form of subsidies, but can also take place in other ways, for example through fiscal policy or innovative lead customership. What is striking in this respect, is that regional and municipal governments seem to understand much better the value of these developments, and the resulting necessary public role.
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In Dutch cities, towns and regions, the importance of a rich cultural climate for economic and social development is often felt more rapidly and directly than by the national government. This certainly applies to large cities such as Amsterdam, Rotterdam, Utrecht and The Hague; whether their policy response is adequate, however, is another matter altogether.
Though it would be impossible to draw any general conclusions, it is quite clear that opportunities on this level are increasingly being recognised. This, incidentally, should by no means be understood as a negative reflection on the other two Dutch candidate cities: Maastricht and Leeuwarden, the second of which went on to win the competition.
In the debate on the social and economic value of the creative industries, the focus is shifting from the magnitude and growth of the businesses which constitute the sector, toward the catalysing effect of the sector on the rest of the economy and on society at large. Within the creative economy as a whole, this potential catalysing effect is much more significant than the size of the sector itself.
At the same time, we can observe how the same creative talent is spreading out across the economy as a whole, within businesses and institutions, for example when the role of designers and communications experts is integrated into one function.