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Overview of Creative Class
and the “3Ts”


October 22, 2008   Kevin Stolarick, PhD
                     Research Director
What is the “Creative Class”?




       2
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 Innovation
       A = Arts and Culture
       P = Professional and Managerial
       E = 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 Occupations                  IT Industry
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


          Workers (Talent)   4,874,885   5,788,767 3,333,726
   Can
   ada
          % of Workforce      35.5%       38.7%     23.0%

          Workers (Talent)   2,027,152   2,210,604 1,311,995
   Onta
    rio
          % of Workforce      33.2%       39.4%     22.7%
The “3Ts” of Regional Growth




       11
The “3Ts”




                 Regional
                  Growth
    Technology
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 quot;high-techquot; 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
                     Regional
                      Growth
    Technology
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
                                       Regional
                                        Growth
    Technology        Tolerance
                     (Inclusiveness)
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
                                             Regional
                                              Growth
    Technology              Tolerance
                           (Inclusiveness)



         Territory Assets
             (Amenities)
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
                                            Regional
                                             Growth
    Technology             Tolerance
                          (Inclusiveness)



        Territory Assets
            (Amenities)
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
                                              Regional
                                            Growth and
    Technology             Tolerance         Prosperity
                          (Inclusiveness)



        Territory Assets
            (Amenities)
Prosperity

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

           Successful regions are
                        PROSPEROUS




      28
Defining “Prosperity”

      Prosperity
      The condition of being prosperous, successful, or
       thriving; good fortune, success, well-being,
       wealth.
      Prosperous
      Having continued success or good fortune;
       consistently successful, esp. economically;
       flourishing, thriving.
                              Oxford English Dictionary
Dimensions of Prosperity

    • Growth                   • Environment/Green
    • Wealth/Money             • Participation / Social Capital
    • Welfare                  • Achieving Potential
        – Education            • Happiness/Satisfaction
        – Healthcare           • Magnetism
        – Wellness/Health
                               • Competitiveness
    • Productivity
                               • City Size
    • Taxes
                               • ∆’s (changes over time)
    • Social Contract
                               • Cultural/Arts Measures
    • Equality/Affordability
                               • Sustainability
    • Inclusiveness
                               • 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




      31
Thank You
Kevin Stolarick


October 22, 2008

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Overview of Creative Class and the “3Ts”

  • 1. Overview of Creative Class and the “3Ts” October 22, 2008 Kevin Stolarick, PhD Research Director
  • 2. What is the “Creative Class”? 2
  • 3. 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%
  • 4. Who Works in Creative Class? Creative Class: TAPE T = Technology and R&D Innovation A = Arts and Culture P = Professional and Managerial E = Educating and Training
  • 5. 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 Occupations IT Industry
  • 6. The Rise of the Creative Class
  • 7. The Rise of the Creative Class
  • 8. 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%
  • 9. U.S. Creative Class • 30 (% of the workforce) • 40 (million people) • 50 (% of the wages) • 70 (% of the discretionary income)
  • 10. Canada & Ontario’s Creative Economy Creative Service Working Workers (Talent) 4,874,885 5,788,767 3,333,726 Can ada % of Workforce 35.5% 38.7% 23.0% Workers (Talent) 2,027,152 2,210,604 1,311,995 Onta rio % of Workforce 33.2% 39.4% 22.7%
  • 11. The “3Ts” of Regional Growth 11
  • 12. The “3Ts” Regional Growth Technology
  • 13. 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 quot;high-techquot; region helps to attract the creative workforce, which, in turn, generates new technologies making the region even more high-tech.”
  • 14. 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
  • 15. The “3Ts” Talent Regional Growth Technology
  • 16. 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.”
  • 17. Talent • Talent Index (Bachelors Degree and above) • % Super Creative (scientists, engineers, artists, musicians, designers) • % Creative Class (super creative + professionals)
  • 18. The “3Ts” Talent Regional Growth Technology Tolerance (Inclusiveness)
  • 19. 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.”
  • 20. 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)
  • 21. The “Fourth T” Talent Regional Growth Technology Tolerance (Inclusiveness) Territory Assets (Amenities)
  • 22. 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.”
  • 23. Territory Assets (Quality of Place) • Economy/Growth • Housing • Culture • Climate • Education • Healthcare • Recreation • Dis-amenities – Crime, Weather • Transportation – Connectedness
  • 24. The “4Ts” Talent Regional Growth Technology Tolerance (Inclusiveness) Territory Assets (Amenities)
  • 25. 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.”
  • 26. Creativity Index • Technology • Tolerance (Inclusiveness) • Talent
  • 27. The “4Ts” Talent Regional Growth and Technology Tolerance Prosperity (Inclusiveness) Territory Assets (Amenities)
  • 28. Prosperity Successful regions are not just growing … They do no just build wealth … Successful regions are PROSPEROUS 28
  • 29. Defining “Prosperity” Prosperity The condition of being prosperous, successful, or thriving; good fortune, success, well-being, wealth. Prosperous Having continued success or good fortune; consistently successful, esp. economically; flourishing, thriving. Oxford English Dictionary
  • 30. Dimensions of Prosperity • Growth • Environment/Green • Wealth/Money • Participation / Social Capital • Welfare • Achieving Potential – Education • Happiness/Satisfaction – Healthcare • Magnetism – Wellness/Health • Competitiveness • Productivity • City Size • Taxes • ∆’s (changes over time) • Social Contract • Cultural/Arts Measures • Equality/Affordability • Sustainability • Inclusiveness • Others?
  • 31. 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 31