Boston’s Creative Economy BRA/Research
November, 2004 This presentation was prepared for Create Boston by the BRA Research Division. The information provided within this report is the best available at the time of its publication.
This report as well as other data on Boston’s creative economy, can be found on Create Boston’s Website: www.createboston.com
City of Boston Thomas M. Menino, Mayor
All or partial use of the data found within this report must be cited. Our preferred Boston Redevelopment Authority citation is as follows: Boston Redevelopment Mark Maloney, Director Authority/Research Division, October 2005. Alvaro Lima, Director of Research Table of Contents:
I. Defining the “Creative Economy”
II. Making the Case
III. Appendices
IV. Glossary
CREATIVITY: BOSTON’S CORE BUSINESS 1 Table of Contents:
I. Defining the “Creative Economy”
II. Making the Case
III. Appendices
IV. Glossary
CREATIVITY: BOSTON’S CORE BUSINESS 2 Defining the “Creative Economy”
 It is clear from current writing that there is as yet no generally accepted definition of the “Creative Economy.”
 The term was first used by Business Week in August of 2000 in a special issue on the 21st Century Corporation - www.businessweek.com/2000/00_35/b3696002.htm
 John Howkins in his seminal book The Creative Economy (2001), describes an economy with fifteen “creative industry sectors” (see Appendix I).
 Richard Florida in The Rise of the Creative Class, defines the “Creative Economy” not in terms of industries but in terms of occupations and “creative classes” - (see Appendix II).
 The New England Council in its 2000 report, limits the “Creative
Economy” strictly to artistic and cultural fields (see Appendix III). 3 Â Our definition of the “Creative Economy” is very close to that of the New England Council and incorporates some, but not all, of the industries proposed by John Howkins and Florida.
 Our concept is at one time broader than that suggested by the New England Council. We include a broader range of industries. And our concept is narrower than that of either Howkins and Florida because our aim is to capture activities more closely connected to the artistic and cultural core.
 Our narrower definition eliminates industries such as business services, law, health care, etc., that are generally accepted as distinct industries.
 Our definition of the “Creative Economy” includes at the most aggregated level:
4  Written Media  Museums & Art Galleries  Film  Libraries & Archives  Broadcasting  Culture Education  Crafts  Performing Arts  Visual Arts  Architecture  Photography  Design  Advertising  Sound Recording & Music Publishing
Proposed Definition:
 The “Creative Economy” is defined, for the purpose of this research, broadly, as those activities which have their origin in individual creativity, skill and talent and which have a potential for wealth and job creation. We include:
 any direct activity in which individual creativity and skill is brought to bear, and which is characterized by innovation and originality and leads to the creation of intellectual property in the form of copyright; 5  any activity (upstream and downstream) which directly contributes to creative activities such that the product would not exist in the same form without it;
 the self-employed (writers, artists, etc.) because the creative industry encompasses many freelance workers.
 Drawing upon the analysis of production systems and production chains, the creative industry can be mapped according to the following “Creative Production Chain:”
Creative Production Chain
cultural Creation* Production Manufacturing Distribution goods (C) (P) (M) (D) and services
Support Activities (SS) heritage services * content origination is at the heart of the “creative economy.” 6 Â The stages of the “Creative Production Chain,” outlined above, illustrate the point that to be consumed, a cultural good or service must first be created, produced, perhaps manufactured, and distributed to consumers.
 These “functional” categories provide a framework which can be used in the analysis of the “creative economy.”
 To make this definition researchable, it was necessary to derive a set of categories from the North American Industry Classification System (NAICS) codes.
 The NAICS is a structured indexing system, published by the U.S. Census Bureau, which provides a set of classifications of businesses by the type of economic activity in which they are engaged. The NAICS provides a widely-shared basis for classification of economic statistics and analysis (see Glossary).
7 Disaggregated Components of the “Creative Economy” Using Proposed Definition NAICS codes Creative Industries Creative Chain
Applied Arts (C) - creation 54131 architectural services (C) (P) - production 54132 landscaping architectural services (C) (M) - Manufacturing 54141 interior design services (C) (D) - distribution 54142 industrial design services (C) (SS) - Support industries 54143 graphic design services (C) 54149 other specialized design services (C) Advertising 54181 advertising agencies (P) 54185 display advertising (P) 54187 advertising material distribution services (D) 54189 other services related to advertising (D) 54183 media buying agencies (D) 54184 media representatives (D) 54186 direct mail advertising (P) Performing Arts: Music, Theater and Dance 71111 theater companies and dinner theater (P) 71112 dance companies (P) 71113 musical groups and artists (C) 71119 other performing arts companies (P) 45114 musical instrument and supplies stores (D) 339992 musical instrument manufacturing (M) 71131 promoters of entertainment events with facility (D) 71132 promoters of entertainment events without facility (D) 71141 agents and managers for artists, athletes, entertainers and other public figures (D) 8 NAICS codes Creative Industries
Publishing and Printing 51111 newspaper publishers (P) 51112 periodical publishers (P) 51113 book publishers (P) 51119 other publishers (P) 323111 commercial gravure printing (M) 323113 commercial screen printing (M) 323114 quick printing (M) 323115 digital printing (M) 323119 other printing (M) 41442 book, periodical and newspaper wholesalers (D) 45121 book stores and news dealers (D)
Broadcasting 51311 radio broadcasting (P) 51312 television broadcasting (P) 51321 cable networks (D) 51322 cable and other program distribution (D)
Sound Recording and Music Publishing 51221 record production (P) 51222 integrated record production and distribution (P) 51224 sound recording studios (P) 33461 manufacturing and reproducing magnetic and optical media (M) 51223 music publishers - publishing and printing combined (M) 45122 pre-recorded tape, compact disc and record stores (D)
9 NAICS codes Creative Industries
Film, Video and Photography 51211 motion picture and video production (P) 51212 motion picture and video distribution (D) 51213 motion picture and video exhibition (D) 51219 post-production and other motion picture and video industries (m) 41445 video cassette wholesalers (D) 53223 video tape and disc rental (D) 54192 photographic services (C) 812921 photo finishing laboratories (except one hour) (P) 45392 art dealers (D) 44313 camera and photographic supplies stores (D) 325992 photographic film, paper, plate and chemical manufacturing (M) 339942 lead pencil and art good manufacturing (M)
Heritage 71211 museums (P) 71212 heritage and historic sites (P) 71219 other heritage institutions (P) 71213 zoos and botanical gardens (P)
Support 61161 fine arts schools (SS) 51412 libraries and archives (SS)
Independent Artists 71151 independent artists, writers and performers (C) 51411 news syndicates (C)
10 Table of Contents:
I. Defining the “Creative Economy”
II. Making the Case
III. Appendices
IV. Glossary
CREATIVITY: BOSTON’S CORE BUSINESS 11 Creative industries contribute to economic vitality in many ways. They:
 create jobs and income;
 contribute to government revenues (local, state and federal);
 attract industry and skilled workers;
 encourage tourism and conventions;
 highlight a location’s history and traditions;
 enhance property values;
 serve as important anchors for downtown and neighborhood revitalization efforts;
 promote tolerance and diversity.
12 The “creative industries” economic contribution to the national economy is substantial:
 In the U.S., copyright industries, which “A LIVELY CULTURAL COMMUNITY AND A HEALTHY ECONOMY ARE include film, video, music, publishing, LIKE AN EQUATION” (THE CREATIVE CITY, A WORKPRINT, APRIL 2001, etc. generate nearly $450 billion in TORONTO CULTURE) annual revenues, roughly 5% of the U.S Gross Domestic Product. They contribute more than $79 billion in global sales.
 The number of people who work in these industries is estimated at 7.6 million, growing at a rate that has far outpaced job growth in many other economic sectors.
 The non-profit segment of the creative industries generates $36.8 billion in revenues, $25.2 billion in personal income and 1.3 million fulltime-equivalent jobs (1992).
 Data from the Bureau of Economic Analysis (BEA) show that consumers spent $10.2 billion (or $37.40 per capita) on admissions to performing arts and events in 1999 - $2 billion more than consumer spending on spectator sports. 13  Of those 29.6 million  The Travel Industry Association of America travelers who added time: (TIAA) reported that, in 2001, 65% of American  43% added part of one day adult travelers included a cultural, arts,  31% added one extra night heritage, or historic activity or event while on a  19% added two trip of 50 miles or more - represents 92.7 extra nights  7% added three or million cultural travelers. more extra nights
 In 2001, 29.6 million travelers lengthened their trips to attend arts, cultural, historic, or heritage activities - an increase from 29% in 1998 to 32% in 2001 of total cultural travelers in the U.S..
 These travelers are wealthier (with average annual incomes of $48,000 vs. $37,000 for all other travelers), better educated, and likely to spend more money than other kind of tourists.
14 The “creative industries” are also emerging as a potent force in the economic life of cities:
 Florida in The Rise of the - CREATIVE PLACES - Creative Class concludes that, in order to have a vibrant economy, it is not enough to be technologically savvy. A city TOLERANCE must also be socially tolerant and culturally diverse thereby building an environment that can TECHNOLOGY TALENT attract and retain the most important resource for a vibrant “ People Climate” “ Business Climate” economy - creative people.
 According to Florida, this explains why cities like Baltimore, St. Louis and Pittsburgh fail to grow despite their deep reservoirs of technology and the presence of world-class universities. Because they have not been sufficiently tolerant, creative talent leaves.
15 Â It also explains why cities like Miami and New Orleans do not make the grade even though they are lifestyle Meccas - they lack a technology base.
 Successful cities like San Francisco, Boston, Austin and Seattle put all 3Ts together - they are truly creative cities.
 Boston has the right stuff: the brains and talent to compete, the know-how to patent and license its technology, the entrepreneurs who are willing to take risk and the kind of diverse and tolerant society that attracts and retains creative people.
 During the 1990s creative industries and artists gravitated towards three pre-eminent centers of creative activity: Los Angeles, New York and San Francisco. These gains were accompanied by notable specializations in eight other metros: Washington DC, Seattle, Boston, Minneapolis-St. Paul, Orange County, Miami, Portland and San Diego.
16 Artistic Concentrations for the 29 Largest U.S. Metro Areas by Employment, 2000
Los Angeles, CA
Super Centers New LosYork A,nge NYl-NesJ, CA San Francisco-NeOwakland, Yor k, CANY-NJ
San Fr ancisco-Oakland, CA Washington, DC-MD-VA Washi ngtSon,eat Dtle,C- MWAD-VA Seattle, WA Boston, MA-NH Orange BoCountyston, ,M CAA-NH Niche Players Or ange County, CA Minneapolis-St. Paul, MN Minneapolis-St. Paul, MN San Diego, CA Boston’s Location Quotient for Select Creative Occupations San Di ego, CA Miami, FL 2.0 Miami, FL Portland, OR-WA 1.8 Portland, OR-WA …… 1.60 1.6 …… 1.56 BaltimorBaltime,o MDr e, MD 1.4 …… 1.45 …… 1.32 …… 1.26 AtlantaAtla,n GAta, GA 1.2 …… 1.12 Traditionalists ChicagoChi ca,go, IL I L 1.0 …… 1.00
Newark,Newa rNJk, NJ 0.8 0.6 Dallas,Dall as,TX TX 0.4 PhoenPhoeix,ni AxZ, AZ 0.2 Philadelphia,Philadelph iPAa, -PNAJ-NJ 0.0 s s s s g Nassau-Suf f olk, NY s t t ng Nassau-Suffolk, NY n i in s c ual s a i t t e m s is i t ci s thor Kansas City, MO-KS t i gner i i r t V or u Ar h si f Kansas City, MO-KS s e c A u r e Ar Denver , CO v e M d D Denver, CO Ar P A
T ampa-St. Peter sbur g, FL 34
Tampa-St. Petersburg, FL . 1 San Jose, CA …… 29 Largest Metros Average San Jose, CA = Laggers Cleveland, OH age r
Cleveland, OH e
River side-Ber nar dino, CA v Riverside-Bernardino, CA o A 1.0
Pittsburgh, PA r t =
Pittsburgh, PA e Houston, T X t M age r Houston, TX s e Detroit, MI e v g r
Detroit, MI A .
St. Louis, MO-IL La S . U St. Louis, MO-IL 29 00.511.522.533.517 Source: Adapted from The Artistic Dividend Revisited, Ann Markusen et.all, March 2004 Boston’s Specialization By Creative Industry Segments
100%
90%
80%
70% Share of State 60% Creative Economy 50% Heritage Employment 40% Advertising Performing Arts (2002) Applied Arts 30% Publishing & Printing Broadcasting
20% Independent Arts Boston’s Share of State Employment = 17.2% Sound & Music 10% Support Services Film, Video & Photography 0% -50% -25% 0% 25% 50% 75% 100% 125% Percentage of Change, 1998–2002
Employment Range
= 0–999 = 1,000–3,999 = 4,000+ 18 Source: BRA/Research Boston’s Specialization By Creative Sub-industries
Promoters of Entertainment w/o facility Dance Companies 100% 425.4% growth Zoos & Botanical Gardens 90%
80% Musical Groups & Artists
70% T.V. Broadcasting Share of State 60% Book Publishers Creative Direct Mail Advertising Economy 50% Employment Newspaper Publishers Architectural Services 40% Advertising Agencies (2002) Radio Broadcasting Media Representatives 30% Art Dealers Libraries & Archives Periodical Publishers Museums Interior Designers 20% Independent Artists Bookstores & News Dealers Boston’s share of State = 17.2% 10%
0% Cable & Program Distribution -50% -25% 0% 25% 50% 75% 100% 125% Percentage of Change, 1998–2002
Employment Range
= 0–99 = 100–499 = 500–999 = 1,000+
Note: Data points too large to fit on the graph are placed on the borders and the values are given as: (y-axis, x-axis). 19 Source: BRA/Research  In 2002, Boston’s Economic Impact of Boston’s Creative Economy (2002) creative industries CITY OF BOSTON METRO AREA added $10.7 billion Gross Regional Product $6.5 billion $7.6 billion to Boston’s total Total Jobs economic output 47,020 jobs 60,800 jobs • Direct 29,720 jobs - (7.8%) and $2.6 • Indirect 17,300 jobs 31,080 jobs billion to personal income within the Personal Income $1.1 billion $2.6 billion region as a whole. Output $10.7 billion $12.7 billion
Source: BRA/Research; REMI Simulation  Creative employment in 2002 totaled 29,720 direct jobs excluding self-employment. This was 5.5% of Boston’s total private sector employment. When self-employment is added, creative employment increased to 34,085.
 The creative economy supports an additional 17,300 jobs in other industries such as retail, business services, professional services, and food services. These spin-off jobs represent a regional employment multiplier of one, that is, for every direct job in the creative sector, one job is created elsewhere. 20 EMPLOYMENT COMPARISION - BOSTON (2002)  In 2002, the Creative industries 120,000 would have been the seventh 100,000 largest industry in Boston ahead of industries such as 80,000
obs 60,000 Manufacturing, Wholesale J
Trade, Retail Trade and 40,000
Construction. For a snapshot 20,000 of the creative economy see 0 S . r . s E e e n g s g n s e s s v g e s c e d n on r n t e e o RI d ce e io e i i n c i a Ag n i t c i t a i r T n ic i ili ic a r a n v t ur a asi r v S Se r t a t rv r & uc eat Appendix V. t e T U rv u e r c r s il T e e p rm e t e s a cr nt a o L S s f hous si o t n m e al l f p NDU e r S s al n e . S I o r R t Hu p e I
In nu o h
es R a C A n , l h & E a
c l C t ona e & h o e W e V i a Su
M I t s s R , h O Food S i of t
. ci a T nc r & W n o F AT i nt o & , Â Total income reached & . na e e S r on m t duc ic i on & Sp o Fi m t i a d if E & t t CRE a F e A t r n ge r a a o Est ie oda C n c p
$1.9 billion in 2002 a s m eal h S t , M n R . m a f al o o e c Tr r H c P (payroll plus receipts of A
self-employed). Source: U.S. Census County Business Patterns; BRA/Research Analysis  Boston’s creative industries grew by 11.3% between 1998 and 2002. This compares to 4.5% for the Massachusetts economy as a whole over the same period.  Performing Arts and Heritage have grown most quickly (49.3% and 31.2% over the period 1998-2002). Broadcasting, Independent Arts, Support Services and Applied Arts also showed growth well above the average for the State economy and that of creative industries as a whole (25.1%, 25.0%, 23.6% and 21.9% respectively). 21 Creative Industries General Characteristics
Average Employment Establishments Employment Total Wages Employees/ Wage Growth Description Growth (2002) (2002) (2002) Establishments (1998-2002) (1998-2002) (2002)
Advertising 131 3,425 $293,126,036 26 -3.1% 16.6%
Applied Arts 383 4,578 $268,816,520 12 21.9% 14.6%
Broadcasting 51 4,215 $293,963,656 83 25.1% 16.2%
Heritage 33 1,839 $53,009,069 56 31.2% 20.6%
Independent Artists 34 250 $10,766,957 7 25.0% -36.6%
Film, Video and Photography 213 1,230 $37,650,220 6 -26.3% 13.2%
Performing Arts 93 3,806 $174,749,368 41 49.3% -8.0%
Publishing and Printing 253 9,465 $625,442,150 37 1.0% 39.1%
Sound Recording and Music 48 486 $10,882,265 10 -3.1% 24.8%
Support Services 36 425 $22,304,966 12 23.6% 141.2%
Total 1,275 29,720 $1,790,711,207 23.3 11.3% 20.5%
Self-employed 4,365 4,365 $119,579,137 ---
Source: U.S. Census County Business Patterns; BRA/Research Analysis
 Advertising; Film, Video and Photography; Sound Recording and Music lost employment over the period 1998-2002.
22 Boston Employment Growth and Decline by Creative Industry Segment (1998 to 2002)
1,500 NetNet JobJob CreationCreation fromfrom 1998-2002:1998-2002: 1,300 +3+3,024,024
1,100 2
-200 900 1998
, 700 n o i t 500 Crea b o
J 300
100
-100
-300
-500
s c g s s t i t t r es n r s ge ng i
i phy c u a i s A g t a Ar i i v t deo & n r ng and d r i r i t e ng A e e e i hi i ogr n V l v & M i , H s S i m p d t m Pr hot n l oadcast Ad bl or i r f u Ap P u r F B P e ppor dependent So u P n I S
23 Source: U.S. Census County Business Patterns; BRA/Research Analysis Boston Employment Growth and Decline by Creative Sub-industries (1998 to 2002)
1,500 NetNet JobJob CreatioCreationn fromfrom 1998-2002:1998-2002: 1,000 +3,024+3,024 2 500 -200 1998
, 0 n o i t
-500 Crea b o J
-1,000 s s n s ) s n s s s g s s g n s s s al s s al s y y s t s al s ng ng es ng es es ng e on e ng es o es on es o es i i ng on e ng es ng n os e i es n es es o ng es es e ng i i c k c i e i i i i i i i i s i t t t i ti ti ti er r i ned ilit ilit t deo t t v t r t t c i er er c ons c c c v c c r s i t i er i i or ic i s s i i i i i or n n her or ti n her i i u ner her i i n c t o s n ent t ti i bi t i her dens u i eums t t i t v v v v udi h v v v v s m hool s al r t a buti s s buti a ca ut i as r t a but r s heater i r i r r r r a s i r r s i
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l di c r r athl a t i i ap t me t al ev , e ph e i a new e a i o m i e and v and bot ound r t n ent her or di ng m f i s ur s her i t t w es gr deo t t s mm m oduc ogr i new , ng a n ur moti ur m ng ar ot mm ndus c t c ent s i o n t i her v s i ator s i l u paper o mus hi ti t pec oos c c c , v r pr a mpani m per a c s t and ar pac r s t z api i i her
d s mater o n r c l m oduc t s i e i i c r l ar r and m i e and ot l r n on pi a s abor c o e t
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on pi u l on pi c ng h n e r f i c e o ti c
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24 Source: U.S. Census County Business Patterns; BRA/Research Analysis  In 2002, there were 1,275 Employment and Establishments by Creative Sectors (2002) creative Employment Establishments establishments 10,000 450
in Boston (see 9,000 400 383 Appendix IV 8,000 350 7,000 for a synopsis). 300 6,000 253 250 5,000 213 Â These 200 4,000 establishments 150 3,000 131 represented 2,000 93 100 1,000 51 48 50 16.9% of all 33 36 34 0 0 t t s e s g d d t creative ts ge e ng r r or i in en ur o c c t a t i i t s A an i t is g c v pp s t i d an g d A nd g r de s r n as i i u i n e n t t c e i enterprises in i S un pe Mu v Her Se n h i pli Ar o m d V d on P r p i de n A S oad t Pr o r A n a f o blis I r B
Massachusetts. u e M P P Source: U.S. Census County Business Patterns; BRA/Research Analysis  The true proportion of enterprises in the creative industries is likely to be higher as certain industries within its sectors tend to be very small businesses. Non-employer establishments (self-employment) are not included on the graph above. 25  Nearly 84% of these establishments belong to five sectors: Applied Arts (383 establishments), Publishing and Printing (253 establishments), Film, Video and Photography (213 establishments); Advertising ( 131 establishments) and Performing Arts (93 establishments).
 The creative industries tend to be heavily dominated by micro size businesses in most sectors (see Appendix IV).
 The “Creative Production Chain” of Boston’s creative industries is heavily concentrated in the production stage (55.8%) followed by distribution (21.7%) and creation (19.0%).
 Of these stages, production and manufacturing decreased during the period 1998-2002. During the same period, wages grew by 25.5% and 47.8% respectively, possibly indicating an increase in productivity.
26 Composition of Boston’s “Creative Production Chain”
SuSupppportort CreationCreation ProProductionduction ManufacturingManufacturing DistributDistributionion IndustriesIndustries
Share of Employment, 2002 19.019.0%% 55.855.8%% 2.12.1%% 21.721.7%% 1.431.43%%
Employment Growth, 1998 to 22.622.6%% 1.21.2%% --30.030.0%% 44.344.3%% 23.623.6%% 2002
Average Wage, 2002 $58,123$58,123 $68,169$68,169 $49,477$49,477 $43,334$43,334 $52,521$52,521
Wage Growth, 1998 to 2002 4.54.5%% 25.525.5%% 47.847.8%% 28.228.2%% 141.2141.2%%
Number of NAICS Industries 1010 2121 1111 1818 22
Source: U.S. Census County Business Patterns, Massachusetts Department of Employment Training, BRA/Research Analysis 27 Linkages with Other Industries:
 Creative industries have primary Information Creative linkages with other industries. Technology Industries Tourism There are mutually beneficial relationships between Creative Industries, Tourism, Education & Education Knowledge Creation, and & Knowledge Creation Information Technology.  Linkages between Creative Industries and Tourism are reciprocal. On the one hand, tourists provide a potential market for many creative industries (live performance, exhibitions, festivals, heritage, etc.) bringing money into Boston’s creative economy. On the other hand, creative industries may be part of a package that attracts tourists in the first place.  Linkages between Creative industries and Education and Knowledge Creation industries are varied. Creative industries themselves have educational segments. In Boston there are 8 schools devoted to art education and training. Emerson College is the largest with 4,000 students followed by Berklee College of Music (2,734), Massachusetts College of Art (2,328), School of the 28 Museum of Fine Arts (1,756), New England Conservatory of Music (794), Boston Architectural Center (674), Art Institute of Boston (514) and Boston Conservatory (492).
 In 2000, college enrollment in art colleges and universities totaled 13,366 (10% of total enrollment).
 The interaction of Creative Industries and Information Technology is also varied, from digital media to web design.
Creative industries play an important role at the intersection of economic, Creative Industries at the cultural and community development. Intersection of Economic, Cultural,
and Community Development: Economic Development
 Finally, the history of creative development is rich with linkages between culture and place Community Cultural making, community building and Development Development economic development:
29 Â Arts and culture are often about crossing boundaries, because creativity is about seeing things in new ways. They nurture the process of cross cultural understanding and integration.
 The arts have always been a pathway to further civic engagement. As communities grow and demographics shift, creative and cultural activities can be used to find and express shared hopes and values.
 Research shows that disadvantaged neighborhoods with higher cultural participation are four times more likely than average to have low delinquency rates.
 Communication through the arts and other creative activities gives immigrants a direct way to reclaim and assert their status as respected accomplished adults.
 Creative industries contribute to an improved quality of life with consequent impact on local economies.
30 Â Creative activities generate new and productive uses for neighborhood facilities and underutilized or abandoned spaces.
 A vibrant creative economy further helps the business community and economic development efforts by providing a pool of talent to draw upon for special design, organizational and marketing efforts.
 The Creative Economy can have a catalyzing role in downtown and neighborhood development and revitalization efforts:
ÂAttract additional people and businesses to downtown core;
ÂReverse the migration to malls in the outskirts of town;
ÂCreate a more vital “lived in” downtown that doesn’t shut down at the end of the work day;
ÂCreate productive new uses for neighborhood facilities and under-utilized or abandoned spaces. 31 Table of Contents:
I. Defining the “Creative Economy”
II. Making the Case
III. Appendices
IV. Glossary
CREATIVITY: BOSTON’S CORE BUSINESS 32 Appendix I: Core Industries of the “Creative Economy” as defined by John Howkins
 R&D  Publishing  Software  TV and Radio  Design  Music  Film  Toys and Games  Advertising  Architecture  Performing Arts  Crafts  Video Games  Fashion  Art 33 Appendix II: Richard Florida’s Definition of “Classes”
Creative Class Computer and mathematical occupations Architecture and engineering occupations Life, physical, and social science occupations Education, training, and library occupations Arts, design, entertainment, sports, and media occupations Management occupations Business and financial operations occupations Legal occupations Healthcare practitioners and technical occupations High-end sales and sales management
Working Class Construction and extraction occupations Installation, maintenance, and repair occupations Production occupations Transportation and material moving occupations
Service Class Health care support occupations Food preparation and food service-related occupations Building and ground cleaning and maintenance occupations Personal care and service occupations Low-end sales and related occupations Office and administrative support occupations Community and social services occupations Protective service occupations
Agriculture Farming, fishing, and forestry occupations 34 Appendix II: Richard Florida’s Definition of “Classes” (cont.)
Key Highlights
38 Million people are in the “creative class;”
more than 55% of the United States GDP is produced by the “creative class;”
the “creative class” consists of more than 30% of the Unites States workforce;
driven force behind the “creative class” is economic; people adding value through their creativity;
economic growth occurs in places where creative people of all types live. Matching of people and jobs is done by geographic place rather than through corporations. “City Air makes Men Free” (Stadluft Macht Frei);
instead of people moving to jobs, companies move to places where there is a large pool of skilled and talented workers;
three characteristics of the “creative class:” need for flexibility, prevalence of change, importance of speed;
three values of the “creative class:” Individuality, Meritocracy, Diversity and Openness.
Service Class: 55 Million people (45%) of the United States workforce are in the services class. Providing answers to the demands of the creative class. Typically low-wage and low autonomy occupations.
Working Class: 33 million people (25%) of the United States workforce are in the working class. Declining sharply, due in part to a shift from the industrial economy, and social and demographic changes. 35 Appendix III: The New England Council’s Definition of the “Creative Economy”
ÂApplied Arts ÂLiterary Arts Architectural Services Book Publishers - Commercial 1 Interior Design Services Libraries and Humanities - Nonprofit Industrial Design Services Graphic Design Services ÂMedia Other Specialized Design Services Cable and Other Program Distribution 1 Advertising Agencies Nonprofit Media Display Advertising Motion Picture and Sound Recording Industry - Commercial Photographic Services - Commercial Prerecorded Compact Disc, Tape and Record Reproducing - Commercial ÂPerforming Arts: Music, Theater, Dance Theater Companies and Dinner Theaters - Commercial ÂHeritage Dance Companies - Commercial Museums - Taxable Musical Groups and Artists - Commercial 1 Nonprofit Ethnic, Historic, Museums Other Performing Arts Companies - Commercial Historical Sites - Taxable Musical Instrument and Supplies Stores - Commercial Musical Instrument Manufacturing - Commercial ÂSupport Promoters of Performing Arts - Commercial Fine Arts Schools 1 1Nonprofit performing arts Nonprofit Support and Education
ÂVisual Arts ÂIndependent Artists Art Dealers - Commercial Independent Artists, Writers and Performers - Incorporated 1Nonprofit Visual Arts 1Independent Artists, Writers and Performers - Unincorporated Camera and Photographic Supplies Stores - Commercial Agents and Managers for Artists - Commercial Photographic Film, Paper, Plate and Chemical Manufacturing - 1 Nonprofit data by product line was compiled by Greg Wassall of Northeastern Commercial University and based upon a survey of non-profit arts and cultural institutions in Lead Pencil and Art Good Manufacturing - Commercial 1996. (from: The Creative Economy Initiative by the New England Council) Art Print Gravure Printing - Commercial The New England Council uses the 1997 US Economic Census, the Current Population 36 Appendix IV: Establishments by Employment-Size Class by Industry for Boston.
CREATIVE INDUSTRIES (2002)
7% 1% Micro (1-9) Small (10-49) Medium (50-499) Large (500 or more) 22%
Number of Establishments by Employment-size Class
1000 900 800 70% 700 600 500 400 Share of Establishments by Employment-size Class 300 200 100 0 Micro (1-9) Small (10-49) Medium (50- Large (500 or 499) more)
Source: U.S. Census County Business Patterns; DET; ABI; and BRA/Research Analysis 37 Appendix IV: Establishments by Employment-Size Class by Industry for Boston (cont.)
ADVERTISING (2002) 2% 2% 100 90 80 Micro (1-9) 70
30% Small (10-49) 60 50 Medium (50-499) 40 Large (500 or more) 30 20 10 66% 0 Micro (1-9) Small (10-49) Medium (50- Large (500 or 499) more)
APPLIED ARTS (2002) 5% 0% 350 300 20% 250 Micro (1-9) 200 Small (10-49) 150 Medium (50-499) 100 Large (500 or more) 50 0 Micro (1-9) Small (10-49) Medium (50- Large (500 or 75% 499) more) Source: U.S. Census County Business Patterns; DET; ABI; and BRA/Research Analysis 38 Appendix IV: Establishments by Employment-Size Class by Industry for Boston (cont.)
BROADCASTING (2002) 4% 20 18 38% 16 27% 14 Micro (1-9) 12 Small (10-49) 10 8 Medium (50-499) 6 Large (500 or more) 4 2 0 31% Micro (1-9) Small (10-49) Medium (50- Large (500 or 499) more)
HERITAGE (2002) 0% 18% 20 18 16 14 Micro (1-9) 12 Small (10-49) 10 Medium (50-499) 8
Large (500 or more) 6 24% 4 2 58% 0 Micro (1-9) Small (10-49) Medium (50- Large (500 or 499) more) Source: U.S. Census County Business Patterns; DET; ABI; and BRA/Research Analysis 39 Appendix IV: Establishments by Employment-Size Class by Industry for Boston (cont.)
INDEPENDENT ARTS (2002)
3% 0% 30 18% 25
20 Micro (1-9)
Small (10-49) 15
Medium (50-499) 10 Large (500 or more) 5
0 Micro (1-9) Small (10-49) Medium (50- Large (500 or 79% 499) more)
FILM, VIDEO & PHOTOGRAPHY (2002) 0% 1% 200 17% 180 160 140 Micro (1-9) 120 Small (10-49) 100 80 Medium (50-499) 60 Large (500 or more) 40 82% 20 0 Micro (1-9) Small (10-49) Medium (50- Large (500 or 499) more) Source: U.S. Census County Business Patterns; DET; ABI; and BRA/Research Analysis 40 Appendix IV: Establishments by Employment-Size Class by Industry for Boston (cont.)
PERFORMING ARTS (2002) 3% 9% 70 60
50 Micro (1-9) 18% 40 Small (10-49) 30 Medium (50-499) 20 Large (500 or more) 10
70% 0 Micro (1-9) Small (10-49) Medium (50- Large (500 or 499) more)
PUBLISHING AND PRINTING (2002) 2% 10% 180 160 140
Micro (1-9) 120
Small (10-49) 100 80 Medium (50-499) 60 26% Large (500 or more) 40 20 0 62% Micro (1-9) Small (10-49) Medium (50- Large (500 or 499) more) Source: U.S. Census County Business Patterns; DET; ABI; and BRA/Research Analysis 41 Appendix IV: Establishments by Employment-Size Class by Industry for Boston (cont.)
SOUND AND RECORDING (2002) 4% 0% 40 35 25% 30
Micro (1-9) 25
Small (10-49) 20
Medium (50-499) 15
Large (500 or more) 10 5 0 71% Micro (1-9) Small (10-49) Medium (50- Large (500 or 499) more)
SUPPORT SERVICES (2002) 0% 8% 30
25 19% Micro (1-9) 20
Small (10-49) 15 Medium (50-499) 10 Large (500 or more) 5
0 73% Micro (1-9) Small (10-49) Medium (50- Large (500 or 499) more) Source: U.S. Census County Business Patterns; DET; ABI; and BRA/Research Analysis 42 Appendix V: Boston’s Creative Economy “Snapshot”
ADVERTISING SNAPSHOT (2002) TOP 10 EMPLOYERS
Employment 3,425 Advertising represents 11.5% of Boston's total creative industry employment. Employment Growth (1998-2002) -3.1% The Employee to Establishment Ratio for Advertising is 26:1 Number of Establishments 131 Top 10 Employers: Average Wages $85,578 Allied Advertising Agency Hill, Holliday, Connors, Cosmopulos Arnold Integrated Solutions Irma S. Mann Strategic Marketing Inc. Wage Growth 16.6% Clarke Communications Group Kelly Habib John Integrated Marketing Boston’s State Location Quotient1 2.02 Connelly Partners Lehman Millet Inc. Gearon Hoffman Inc. Modernista 1 Location Quotient (LQ) measures Boston’s share of employment compared to the State average. An LQ of 1 means that Boston’s share is equal to the State’s.
SUB-INDUSTRY COMPOSITION BY EMPLOYMENT CHANGE IN EMPLOYMENT (1998-2002) 4% 2,500 2% 37% Advertising Agencies 1998 Media Buying Agencies 2002 2,000 Media Representatives
Display Advertising 1,500 Direct Mail Advertising
Adver. Material Dist. Serv. 1,000 Other Advertising Services 500
49% 0 0% Advertising Media Buying Media Display Direct M ail Advertising Ot her Services Agencies Agencies Represent at ives Advertising Advertising Material Related to 6% Distribution Advertising 2% Services Source: U.S. Census County Business Patterns; DET; ABI; Boston Business Journal 2004 Book of Lists; and BRA/Research Analysis 43 Appendix V: Boston’s Creative Economy “Snapshot” (cont.)
APPLIED ARTS SNAPSHOT (2002) TOP 10 EMPLOYERS
Employment 4,578 Applied Arts represents 15.4% of Boston's total creative industry employment. Employment Growth (1998-2002) 21.9% The Employee to Establishment Ratio for Applied Arts is 12:1 Number of Establishments 383 Top 10 Employers: Average Wages $58,716 CBT Childs Bertman Tseckares Jacobs Engineering CID Associates Incorporated Payette Associates Inc. Wage Growth 14.6% Elkus Manfredi Architects Shepley Bulfinch Richardson Boston’s State Location Quotient1 2.06 George BH Macomber Co. Spire Printing SVC Goody Clancy & Associates Inc. Bergmeyer Associates 1 Location Quotient (LQ) measures Boston’s share of employment compared to the State average. An LQ of 1 means that Boston’s share is equal to the State’s.
SUB-INDUSTRY COMPOSITION BY EMPLOYMENT CHANGE IN EMPLOYMENT (1998-2002)
9% 0% Architectural Services 4,000 1998 1% Landscape Arch. Services 3,500 2002 6% Interior Design Services 3,000 5% Industrial Design Services 2,500 Graphic Design Services 2,000 Other Specialized Design 1,500
1,000
500 79% 0 A rchit ect ural Serv. Landscape Arch. Interior Design Serv. Industrial Design Graphic Design Serv. Ot her Specialized Serv. Serv. Design Source: U.S. Census County Business Patterns; DET; ABI; Boston Business Journal 2004 Book of Lists; and BRA/Research Analysis 44 Appendix V: Boston’s Creative Economy “Snapshot” (cont.)
BROADCASTING SNAPSHOT (2002) TOP 10 EMPLOYERS
Employment 4,215 Broadcasting represents 14.2% of Boston's total creative industry employment. Employment Growth (1998-2002) 25.1% The Employee to Establishment Ratio for Broadcasting is 83:1 Number of Establishments 51 Top 10 Employers: Average Wages $69,740 AT&T Broadband WBZ Entercom WGBX Wage Growth 16.2% Greater Boston Radio Group WHDH Boston’s State Location Quotient1 1.48 Hemisphere Broadcasting WLVI WBUR WQSX 1 Location Quotient (LQ) measures Boston’s share of employment compared to the State average. An LQ of 1 means that Boston’s share is equal to the State’s.
SUB-INDUSTRY COMPOSITION BY EMPLOYMENT CHANGE IN EMPLOYMENT (1998-2002)
Radio Broadcasting 2,500 1998 18% 18% Television Broadcasting 2002 2,000 Cable Networks
Cable & Other Program Distribution 1,500
1,000
18% 500
46% 0 Radio Broadcasting T.V. Broadcasting Cable Netw orks Cable & Other Program Dist. Source: U.S. Census County Business Patterns; DET; ABI; Boston Business Journal 2004 Book of Lists; and BRA/Research Analysis 45 Appendix V: Boston’s Creative Economy “Snapshot” (cont.)
HERITAGE SNAPSHOT (2002) TOP 10 EMPLOYERS
Employment 1,839 Heritage represents 6.2% of Boston's total creative industry employment. Employment Growth (1998-2002) 31.2% The Employee to Establishment Ratio for Heritage is 56:1 Number of Establishments 33 Top 10 Employers: Average Wages $28,825 Franklin Park Zoo Museum of Science, Boston Isabella Stewart Gardner Museum New England Aquarium Wage Growth 20.6% JFK Library and Museum Old State House Museum Museum of Afro-American Hist. The Children’s Museum 1 Boston’s State Location Quotient 2.35 Museum of Fine Arts, Boston USS Constitution Museum 1 Location Quotient (LQ) measures Boston’s share of employment compared to the State average. An LQ of 1 means that Boston’s share is equal to the State’s.
SUB-INDUSTRY COMPOSITION BY EMPLOYMENT CHANGE IN EMPLOYMENT (1998-2002)
3% Museums 1,200 1998
Heritage & Historic Sites 2002 41% 1,000 Zoos & Botanical Gardens
Other Heritage Institutions 800
600
400 53% 200
0 3% Museums Heritage & Historic Sites Zoos & Botanical Other Heritage Gardens Institutions Source: U.S. Census County Business Patterns; DET; ABI; Boston Business Journal 2004 Book of Lists; and BRA/Research Analysis 46 Appendix V: Boston’s Creative Economy “Snapshot” (cont.)
INDEPENDENT ARTS SNAPSHOT (2002) TOP 10 EMPLOYERS
Employment 250 Independent Arts represents 0.8% of Boston's total creative industry employment.. Employment Growth (1998-2002) 25.0% The Employee to Establishment Ratio for Independent Arts is 7:1 Number of Establishments 34 Average Wages $43,007 Top 10 Employers: Associated Press D.J. Chris Fiore Inc. Wage Growth -36.6% Blackside Inc. Finish Limited Boston Bureau Productions Liberty Book II Boston’s State Location Quotient1 1.15 Business Wire P.R. Newswire Association Inc. Concannon Group Rich Inc. 1 Location Quotient (LQ) measures Boston’s share of employment compared to the State average. An LQ of 1 means that Boston’s share is equal to the State’s.
SUB-INDUSTRY COMPOSITION BY EMPLOYMENT CHANGE IN EMPLOYMENT (1998-2002)
News Syndicates 1998 140 Independent Artists, 2002 Writers & Performers 50% 120
100
80
60 50% 40
20
0 New s Syndicates Independent Artists, Writers & Performers
Source: U.S. Census County Business Patterns; DET; ABI; Boston Business Journal 2004 Book of Lists; and BRA/Research Analysis 47 Appendix V: Boston’s Creative Economy “Snapshot” (cont.)
FILM, VIDEO & PHOTOGRAPHY SNAPSHOT (2002) TOP 10 EMPLOYERS
Employment 1,230 Film, Video & Photography represents 4.1% of Boston's total creative industry employment. Employment Growth (1998-2002) -26.3% The Employee to Establishment Ratio for Film, Video & Photography Number of Establishments 213 is 6:1 Average Wages $30,606 Top 10 Employers: Blockbuster Video Hoyts Cinemas Wage Growth 13.2% Boston Corporate Art Hub Video Boston Photo Imaging Light Sources Boston’s State Location Quotient1 0.56 Cabot Corporation Rendon Group E. Philip Levine Inc. WGBH Production SVC 1 Location Quotient (LQ) measures Boston’s share of employment compared to the State average. An LQ of 1 means that Boston’s share is equal to the State’s.
SUB-INDUSTRY COMPOSITION BY EMPLOYMENT CHANGE IN EMPLOYMENT (1998-2002) 5% 500 1% 8% 15% Camera/Photo Supplies 1998 1% Art Dealers 400 2002 10% 6% M.P. & Video Production 300
M.P. & Video Distribution 200
M.P. & Video Exhibition 100 0 t
Post-Production & other r s g s n g al o r t n e on on o n es i i i i i i n e he n t t l c t i i ( e a ur ur o b v t i t
ppl but e r i R c h c es u duc Video Tape & Disc Rental r i e t a c x a D r S o t f f
s s r i o S i t on & c i i c Ar t a D h r anu c anu & Photographic Services p eo P deo E phi
u i a d M a d ) es r i deo D i r o V m g l r or i ape V
22% og t V 1hr P ood M - F S Photo Film Manufacturing & e & t oto 3% ng Labo c i G hot e & s h e t ur r eo T h r o t P P u d s ur phi P i t c A i t a ni c & V i i c r Art Good Manufacturing i a g r P e o F on P 24% n i t o oto m i on P i o t h t a hot o M P Photo Finishing Labs o C P M
5% M Source: U.S. Census County Business Patterns; DET; ABI; Boston Business Journal 2004 Book of Lists; and BRA/Research Analysis 48 Appendix V: Boston’s Creative Economy “Snapshot” (cont.)
PERFORMING ARTS SNAPSHOT (2002) TOP 10 EMPLOYERS
Employment 3,806 Performing Arts represents 12.8% of Boston's total creative industry employment. Employment Growth (1998-2002) 49.3% The Employee to Establishment Ratio for Performing Arts is 41:1 Number of Establishments 93 Average Wages $45,909 Top 10 Employers: Aramark Boston Symphony Orchestra Inc. Wage Growth -8.0% Blue Man Group Broadway in Boston Boston Ballet Co. Huntington Theatre Co. Inc. 1 Boston’s State Location Quotient 2.55 Boston Concessions at the Wang NBG Corporation Boston Music Co. Shear Madness Box Office 1 Location Quotient (LQ) measures Boston’s share of employment compared to the State average. An LQ of 1 means that Boston’s share is equal to the State’s.
SUB-INDUSTRY COMPOSITION BY EMPLOYMENT CHANGE IN EMPLOYMENT (1998-2002)
2% 3% 10% Musical Instrument 2000 1998 2% & Supplies Store 1800 2002 10% Theater Companies 1600 Dance Companies 1400 Musical Groups & Artists 1200 Other Performing Arts 1000 Companies 800 Promoters with Facility 600 Promoters without Facility 400 Public Figures 200 0 s s g s s s th 18% ty i Musical Instrument i ng es e n e e l i i e i i i i r s e & er l n n c t s m n l or u c w ent oup a ur t t y a a a n er t a r a g n Manufacturing t s i c s i or m i p p i eat l c 45% e p c i S t f i ot u s t F h a G F er r r m m m c l s r Da m s f t m T t e u a e o o lic 0% i o r s l ou Mu Co Co Fa c t r P i b nu Mu n C & A r I s P th u a s i om pp u ts r P In u M he r w P t M S A 10% O Source: U.S. Census County Business Patterns; DET; ABI; Boston Business Journal 2004 Book of Lists; and BRA/Research Analysis 49 Appendix V: Boston’s Creative Economy “Snapshot” (cont.)
PUBLISHING & PRINTING SNAPSHOT (2002) TOP 10 EMPLOYERS
Employment 9,465 Publishing & Printing represents 31.8% of Boston's total creative industry employment.. Employment Growth (1998-2002) 1.0% The Employee to Establishment Ratio for Publishing & Printing is 37:1 Number of Establishments 253 Average Wages $66,078 Top 10 Employers: Acme Bookbinding Company Houghton Mifflin Co. Wage Growth 39.1% AOLTWBG INC Magazine Boston Globe Pearson Custom Publishing 1 Boston’s State Location Quotient 1.64 Boston Herald Phoenix Media Communications Course Technology Inc. Time Warner Trade Publishing 1 Location Quotient (LQ) measures Boston’s share of employment compared to the State average. An LQ of 1 means that Boston’s share is equal to the State’s.
SUB-INDUSTRY COMPOSITION BY EMPLOYMENT CHANGE IN EMPLOYMENT (1998-2002)
1% 2% 1% 1% Book, Periodical & 5000 1998 0% 3% Newspaper Wholesalers 9% Book Stores/News Dealers 4000 2002 1% Newspaper Publishers 3000 24% Periodical Publishers 2000 Book Publishers 1000 Other Publishers 0 s g s g g s g g s s r r er r r n n n n Gravure Printing n i i i i i er e t t t t t h he he he n al in in i in in s pap s s r r r r r e i i i lis s P P P bl bl bl
b D l P r
Screen Printing k P u e u w u n u s a e t s e e ic i P P P P h ur w e r g r k i er N r al e o Qu Ot D av al c he i pe r & N t Quick Printing l Sc Bo l a es O od pa G & i l c ia ol r s a i c h e es r c w
9% odi P i r e W Digital Printing e or r t e e N 49% m S m P
m
, k m o k o o C o
Other Printing o C o B B Source: U.S. Census County Business Patterns; DET; ABI; Boston Business Journal 2004 Book of Lists; and BRA/Research Analysis 50 Appendix V: Boston’s Creative Economy “Snapshot” (cont.)
SOUND & RECORDING SNAPSHOT (2002) TOP 10 EMPLOYERS
Employment 486 Sound & Recording represents 1.6% of Boston's total creative industry employment. Employment Growth (1998-2002) -3.1% The Employee to Establishment Ratio for Sound & Recording is 10:1 Number of Establishments 48 Average Wages $22,384 Top 10 Employers: Adaptive Networks Inc. Scully Signal Co. Wage Growth 24.8% Bristol Recording Studios Strawberries Fantastic Transcripts Tape Transcription Center 1 Boston’s State Location Quotient 1.04 Newbury Comics Video Express Offtech Video Transfer Inc. 1 Location Quotient (LQ) measures Boston’s share of employment compared to the State average. An LQ of 1 means that Boston’s share is equal to the State’s.
SUB-INDUSTRY COMPOSITION BY EMPLOYMENT CHANGE IN EMPLOYMENT (1998-2002)
2% 17% Manufacturing Magnetic & 350 1998 16% Optical Media 0% 2002 Tape, CD & Record Stores 300 Record Production 2% Integrated Record 250 Production & Distribution Music Publishers 200 Sound Recording Studios 150
100
50
0 Manufacturing Tape, CD & Record Record Product ion Int egrat ed Record M usic Publishers Sound Recording Magnetic & Optical St ores Product ion and St udios 63% Media Distribution Source: U.S. Census County Business Patterns; DET; ABI; Boston Business Journal 2004 Book of Lists; and BRA/Research Analysis 51 Appendix V: Boston’s Creative Economy “Snapshot” (cont.)
SUPPORT SERVICES SNAPSHOT (2002) TOP 10 EMPLOYERS
Employment 425 Support Services represents 1.4% of Boston's total creative industry employment.. Employment Growth (1998-2002) 23.6% The Employee to Establishment Ratio for Support Services is 12:1 Number of Establishments 36 Average Wages $52,521 Top 10 Employers: Baker Library New England Conservatory-Music Wage Growth 141.2% Boston Athenaeum School of the Museum of Fine Arts Boston Public Library Snell Library Boston’s State Location Quotient1 0.77 Community Music Center of Bos. Social Law Library Mugar Memorial Library Thomas P. O’Neil Jr. Library 1 Location Quotient (LQ) measures Boston’s share of employment compared to the State average. An LQ of 1 means that Boston’s share is equal to the State’s.
SUB-INDUSTRY COMPOSITION BY EMPLOYMENT CHANGE IN EMPLOYMENT (1998-2002)
Libraries and Archives 1998 300 41% Fine Arts Schools 2002 250
200
150
100 59% 50
0 Libraries & Archives Fine Arts Schools
Source: U.S. Census County Business Patterns; DET; ABI; Boston Business Journal 2004 Book of Lists; and BRA/Research Analysis 52 Appendix VI: Technical Note
 The primary data for this report are derived from a variety of sources:
 Creative activity is calculated as part of existing national accounting schemes, using established industrial classifications;
 Employment data, payroll, establishments and growth calculations are derived from the U.S. Census Bureau’s County Business Patterns 1998 and 2002, using the North American Industry Classification System (NAICS);
 The County Business Patterns only lists payroll jobs. Data on self- employment within the “creative economy” are from the U.S. Census Bureau’s Nonemployer Statistics for 1998 and 2002;
 Information on larger employers comes from the American Business International (ABI) database;
 Data on Boston’s Colleges and Universities are from “Connection: Facts 2000,” New England Board of Higher Education;
53 Appendix VI: Technical Note (cont.)
 Estimates of the size of the non-profit arts industry nationwide are from “Jobs, Arts and the Economy,” published by Americans for the Arts, Washington D.C., 1994;
 Impact estimates were generated using the REMI model - a regionalized version of the U.S. National Input-Output Model. In order to derive multipliers for Boston’s Creative Economy, a special run was performed by the BRA/Research team;
 Between them, these sources offer the ability to draw a quite detailed picture of the “Creative Economy” in statistical terms;
 Finally, current research publications, specialized reports, policy papers and academic studies related to the “creative economy” were reviewed.
54 Table of Contents:
I. Defining the “Creative Economy”
II. Making the Case
III. Appendices
IV. Glossary
55 Glossary:
 Creativity - The process by which ideas are generated, connected and transformed into things that are valued;
 Cultural and Heritage Tourism - There are as many definitions of cultural and heritage tourism as there are reports on the subject. The most generally accepted definition uses the term as follows: Cultural and Heritage Tourism occurs when participation in a cultural or heritage activity is a significant factor for travelling;
ÂLocation Quotient (LQ) - The location coefficient measure employment concentration or specialization. It compares employment share (for a specific occupation or industry) in a place with their share in the national economy, MSA, etc.. The location coefficient will be less than one if a particular industry or occupation is under represented, and greater than one if they are over-represented;
56 Glossary (I):
 Non-employer - A non-employer business is defined by the U.S. Census bureau as one that has no paid employees, has annual business receipts of $1,000 or more and is subject to federal income taxes. Most non-employers are self-employed individuals operating very small unincorporated businesses, which may or may not be the owner’s principal source of income;
ÂNorth American Industry Classification System (NAICS) -The North American Industry Classification System was developed by representatives from the United States, Canada, and Mexico, and replaced each country’s separate classification systems with one uniform system for classifying industries - http://www.census.gov/epcd/www/naics.html
57 Glossary (II):
 Number of Establishments - Generally, an establishment is a single physical location where business is conducted or services or industrial operations are performed. However, for non-employers we count each distinct business income tax return filed by a non-employer business as an establishment. A non-employer business may operate from its owner’s home address or from a separate physical location. Most geography codes are derived from the business owner’s mailing address, which may not be the same as the physical location of the business;
58