Arts As An Economic Engine

http://www.citylab.com/2014/12/why-cities-cant-afford-to-lose-their-artisits/383298

"Art Basel Miami Beach"
themiamiartscene.com

Hello Everyone:

Between December 3rd and 6th, the art world convened in Miami Beach for three days of gallery shows.  Sun, surf, modern and contemporary art a combination hard to beat.  More than the thought of spending a long afternoon taking in a beachside gallery show, Richard Florida looks at how leading arts hubs play a role in economic development.  In his article, "Why Cities Can't Afford to Lose Their Artists" for CityLab, writes, "The art fair is widely credited with kick-starting the economic resurgence of the Miami area, so it seems like a good time to ask: What do we really know about the role of art and the city?"  Good question.  Do art exhibitions and other cultural events help economic growth and development or do they facilitate gentrification? Are leading art clusters found only in big cities such as New York and Los Angeles or can they be replicated in smaller and/or medium sized cities?

Industries in arts cluster
2010 U.S. Census, North America
citylab.com

Recently, Urban Studies published a study that closely examines the connection between the arts and the city.  Before yours truly goes any further, I would like to clarify the word "arts."  Arts is defined as a general term for all facets of the performing (eg. acting and music) and fine arts (eg. painting and sculpture).  The study was conducted by Carl Grodach of the Queensland University of Technology, Elizabeth Currid-Halkett of the University of Southern California (full disclosure, Ms. Currid-Halkett was one of my professors at USC), and James Murdoch III of the University of Texas, Arlington.  It analyzes the economic and demographic factors closely associated with arts clusters and the types of metropolitan areas where arts hubs are located.  The research team looked at the concentration of arts clusters, using the standard location quotient measure, across 366 American metropolitan areas and almost 14,000 ZIP codes, about 90 percent of all arts-related employment.

The Grodach team also studied the relationships between the arts clusters and a series of 33 social, economic, and demographic determinants spread out over four types of metro areas: large metros with populations over 1,000,000 people, mid-sized metros with a 500,000 to 1,000,000 people, small metros with a population of 250,000 to 500,000 people, and smaller metros with populations of less than 250,000.  The researchers identified arts clusters as composed of twenty-two key industries that produce artistic content, excluding the radio and television broadcasting industries.  They used a series of statistical techniques, such as correlations and regression models, to locate the types of places home to arts clusters and the key locational factors connected with them.

2010 Metro arts cluster employment size and concentration
Grodach et al.
citylab.com

The research discovered that "...arts hubs are considerably concentrated, taking the form of a 'winner-take-all geography.'"  Case in point, "28 out of the 366 U.S. metros, less than one in ten, have substantial arts hubs with LQ's of 1.2 or higher."  The chart to the left illustrates how metro compare in terms of arts employment (Y-axis) versus their concentration of arts industries based on their LQs (X-axis).  Metropolitans such as Los Angeles (upper right), have higher levels of very concentrated arts employment.  While cities in lower right quadrant have high concentration of arts industries but lower art employment. Historic arts hubs New York City and San Francisco have high arts employment opportunities but less concentrated.  Smaller cites like Ashville, North Carolina; Boulder, Colorado; and Ann Arbor, Michigan present a significant arts hub for their size.  However, Nashville, Tennessee; Honolulu, Hawai'i; Seattle, Washington present impressive number in terms of arts employment and concentration, despite their small size.  Yet, Boston and Chicago contain smaller arts clusters than suggested by their levels of arts employment.

Downtown Ann Arbor, Michigan
flickr.com

In general, the study reveals that arts clusters are found in "urbanized, relatively diverse regions," and their presence is definitely associated with strong economies.  Richard Florida adds this caveat, "But the factors that are associated with arts hubs vary considerably  between large, medium-size and smaller metros."  The situation gets more complex when the research team bring their analysis down to the neighborhood level.  The first and most obvious result is the data from their statistical analysis is weaker: "Their neighborhood level analysis explains just 14 percent of the variance in where arts hubs are located, compared to 59 percent for the metro models." Specifically, the links between arts clusters and urbanization, density, a highly educated population, and diversity get weaker or disappear at the micro-level (the neighborhood).

Union Square
San Francisco, California
sanfrancisco.about.com

Richard Florida point out, "While much has been made of the connection between arts and gentrification, the researchers find little evidence of it, noting that 'arts clusters are lied less to conventional signs of gentrification and 'urban' characteristics but rather they maybe found where other related industries that rely on specialized expertise and knowledge abound.'"  In other words, there is a negative correlation between arts clusters and poverty.

Further, there are two important implications that emanate from the study's key conclusions.  First, mayors, arts and cultural policy makers, and economic developers are better served by taking a localized approach to arts hubs and creative place making.  The researchers write:

[A] comprehension of arts clusters requires a specificity and particular attention to the uniqueness of the the type of art and place itself.  Targeted local development may be the most important means by which to support the arts, rather than broader federal, state or regional efforts.  Distinctions between arts clusters occur at localized level and thus ought to be supported as such.

The second key conclusion in the study found that benefits flow better from connect arts and innovation hubs.  The research team writes, "While many of the variables linked to arts clusters are incredibly place specific...the arts are linked to broad measures of innovation and development...suggesting the arts can play a larger role in economic development irrespective of metro size or geographic boundaries of city and neighborhood."

What can we take from this study of arts clusters and economic development.  In a somewhat limp conclusion, Richard Florida writes, "Ultimate the study note that while arts are not a silver bullet for cities, their role in urban economic development is, in the authors' words. 'highly underestimated.'"