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Veneto: a Manufacturing Region with a Cultural and Creative Edge OECD Local Economic and Employment Development (LEED) Papers 2021/04 Veneto: A manufacturing region with a cultural Pierluigi Sacco and creative edge https://dx.doi.org/10.1787/54dc699f-en OECD Local Economic and Employment Development (LEED) Papers Veneto: A manufacturing region with a cultural and creative edge By Pierluigi Sacco The COVID-19 crisis has provided an opportunity to rethink the Veneto Region’s economic strategy. This paper examines the links between cultural and creative sectors and the regional manufacturing economy of the Veneto Region in the North of Italy, highlighting the important role that cultural production, and in particular Venice, can play in the region’s post-pandemic recovery and innovation strategies. JEL codes: O31; R12; Z18 Keywords: Veneto; culture, cultural and creative sectors; innovation; competitiveness; local development 2 ABOUT THE OECD The OECD is a multi-disciplinary inter-governmental organisation of 38 member countries which engages in its work an increasing number of non-members from all regions of the world. The Organisation’s core mission today is to help governments work together towards a stronger, cleaner, fairer global economy. Through its network of 250 specialised committees and working groups, the OECD provides a setting where governments compare policy experiences, seek answers to common problems, identify good practice, and co-ordinate domestic and international policies. More information available: www.oecd.org. ABOUT OECD LOCAL ECONOMIC AND EMPLOYMENT DEVELOPMENT (LEED) PAPERS The OECD Local Economic and Employment Development (LEED) Programme Papers present innovative ideas and practical examples on how to boost local development and job creation. A wide range of topics are addressed, such as employment and skills; entrepreneurship; the social economy and social innovation; culture; and local capacity building, among others. The series highlights in particular policies to support disadvantaged places and people, such as the low skilled, the unemployed, migrants, youth and seniors. OECD Working Papers should not be reported as representing the official views of the OECD or of its member countries. The opinions expressed and arguments employed are those of the author(s). Working Papers describe preliminary results or research in progress by the author(s) and are published to stimulate discussion on a broad range of issues on which the OECD works. Comments on Working Papers are welcome, and may be sent to the Centre for Entrepreneurship, SMEs, Regions and Cities, OECD, 2 rue André-Pascal, 75775 Paris Cedex 16, France. This paper is authorised for publication by Lamia Kamal-Chaoui, Director, Centre for Entrepreneurship, SMEs, Regions and Cities, OECD. This document, as well as any statistical data and map included herein, are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. © OECD 2021 You can copy, download or print OECD content for your own use, and you can include excerpts from OECD publications, databases and multimedia products in your own documents, presentations, blogs, websites and teaching materials, provided that suitable acknowledgement of OECD as source and copyright owner is given. All requests for public or commercial use and translation rights should be submitted to [email protected]. VENETO: A MANUFACTURING REGION WITH A CULTURAL AND CREATIVE EDGE © OECD 2021 3 Acknowledgements This paper was drafted by Pier Luigi Sacco, Senior Advisor at the OECD, in the Centre for Entrepreneurship, SMEs, Regions and Cities under the leadership of Lamia-Kamal Chaoui, Director. It is part of the Programme of Work of the Local Employment and Economic Development (LEED) Programme’s activities on culture. The author thanks Mario Volpe, Professor of Economics, University of Venice Cà Foscari and Advisor to the Foundation of Venice, as well as Francesco Valle, OECD consultant, for their inputs. Extensive comments by Nadim Ahmad, Deputy Director of the Centre for Entrepreneurship, SMEs, Regions and Cities (CFE) as well as Karen Maguire, Head of the Local Employment, Skills and Social Innovation Division (CFE) are duly recognised. Financial support from the Foundation of Venice and the Veneto Regional Chamber of Commerce for this work is gratefully acknowledged. VENETO: A MANUFACTURING REGION WITH A CULTURAL AND CREATIVE EDGE © OECD 2021 4 Table of contents Acknowledgements 3 Executive summary 6 Introduction 8 Understanding the Veneto cultural and creative economy 11 Veneto: the geography of cultural and creative production 16 Examples of innovative crossovers and repurposing of cultural and creative production in Veneto 32 Conclusions 36 Annex 1: Defining cultural and creative sectors 40 Annex 2: Statistical profiles 42 Annex 3: Cultural event production in Venice 48 References 49 Tables Table 1. Business structure, GDP and GDP share of cultural and creative sectors 9 Annex Table 1. Cultural and creative sectors covered by the analysis (NACE classification) 41 Annex Table 1. Recent trends in cultural event production in Venice 48 Figures Figure 1. Value added and value added per employee, Veneto 1995-2020 8 Figure 2. Culture and creative production and manufacturing in Veneto 17 Figure 3. Textile manufacturing: spatial distribution and sectoral density in Veneto, and location quotient within Italy 18 Figure 4. Wearing apparel: spatial distribution and sectoral density in Veneto, and location quotient within Italy 19 Figure 5. Leather goods: spatial distribution and sectoral density in Veneto, and location quotient within Italy 20 Figure 6. Furniture: spatial distribution and sectoral density in Veneto, and location quotient within Italy 21 VENETO: A MANUFACTURING REGION WITH A CULTURAL AND CREATIVE EDGE © OECD 2021 5 Figure 7. Recorded media: spatial distribution and sectoral density in Veneto, and location quotient within Italy 22 Figure 8. Publishing: spatial distribution and sectoral density in Veneto, and location quotient within Italy 23 Figure 9. Film, music and video production: spatial distribution and sectoral density in Veneto, and location quotient within Italy 24 Figure 10. Broadcasting: spatial distribution and sectoral density in Veneto, and location quotient within Italy 25 Figure 11. Advertising: spatial distribution and sectoral density in Veneto, and location quotient within Italy 26 Figure 12. Artistic, creative and entertainment activities: spatial distribution and sectoral density in Veneto, and location quotient within Italy 27 Figure 13. Libraries, museums, archives and other cultural activities: spatial distribution and sectoral density in Veneto, and location quotient within Italy 28 Figure 14. Architecture and engineering: spatial distribution and sectoral density in Veneto, and location quotient within Italy 29 Figure 15. Jewellery and musical instruments: spatial distribution and sectoral density in Veneto, and location quotient within Italy 30 Figure 16. Restaurants: spatial distribution and sectoral density in Veneto, and location quotient within Italy 31 Annex Figure 1. Distribution of firm size across cultural and creative sectors in the region of Veneto 42 Annex Figure 2. Distribution of firm size across cultural and creative sectors in the province of Belluno 43 Annex Figure 3. Distribution of firm size across cultural and creative sectors in the province of Padua 43 Annex Figure 4. Distribution of firm size across cultural and creative sectors in the province of Rovigo 44 Annex Figure 5. Distribution of firm size across cultural and creative sectors in the province of Treviso 45 Annex Figure 6. Distribution of firm size across cultural and creative sectors in the province of Venice 46 Annex Figure 7. Distribution of firm size across cultural and creative sectors in the province of Verona 46 Annex Figure 8. Distribution of firm size across cultural and creative sectors in the province of Vicenza 47 VENETO: A MANUFACTURING REGION WITH A CULTURAL AND CREATIVE EDGE © OECD 2021 6 Executive summary The Veneto region is famous for its global cultural tourism hub of Venice and has a strong manufacturing base across a network of cities. But is the region maximising its economic and social potential through culture and creative industries? This paper examines the links between cultural and creative sectors and the regional manufacturing economy, highlighting how cultural production can play an important role in the region’s post-pandemic recovery strategies. The effects of the COVID-19 crisis are an opportunity to rethink the region’s economic strategy and in particular the role that Venice can play. The Veneto cultural and creative economy is highly polycentric, with no clearly established regional leader. Cultural and creative sectors are organised around an axis of main cities rather than a large, single regional hub. Verona for example is more specialised in events, entertainment and recorded media while Padua leads in publishing, architectural design, film, music and video production, and broadcasting. In other sectors however, such as manufacturing (especially apparel, textiles and leather), or advertising and architectural design, the distribution is more widespread across the territory. Significant potential could be tapped through a stronger and more integrated cultural and creative regional ecosystem The size of Veneto’s creative economy is comparable to that of other major Italian regions such as Lombardy,
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