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Creative Industry Report

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Creative Industry Report KENTUCKY CREATIVE INDUSTRY REPORT 1 THIS REPORT WAS PREPARED BY: Robert Donnan, Stuart Rosenfeld, Beth Siegel of Mt. Auburn Associates, and Dan Broun of MDC Inc. With support from: Adam Kornetsky, Jillian Lanney, Adam Levin and Kelly Yardley, Mt. Auburn Associates 2 TABLE OF CONTENTS 2 Introduction to the Creative Industry DEFINING THE CREATIVE INDUSTRY THE ECONOMICS OF CREATIVITY PURPOSE AND METHODS KEY DEFINITIONS THE ECONOMIC CONTEXT 20 The Creative Segments KENTUCKY’S VISUAL ARTS DESIGNING KENTUCKY’S FUTURE PERFORMING ARTS KENTUCKY MEDIA 56 Creative Convergence TOURISM AS CULTURAL EXPERIENCE ARTISANAL FOOD AND CULINARY ART MANUFACTURING EXPERIENCES INFORMATION AND RELATED TECHNOLOGIES THE HEALING ARTS 67 Kentucky’s Creative Places KENTUCKY CREATIVE COMMONWEALTH NETWORK OTHER CREATIVE PLACEMAKING EFFORTS FUNDING CREATIVE PLACEMAKING TOOLS AND STRATEGIES FOR CREATIVE PLACEMAKING IMPACT ON ECONOMIC AND COMMUNITY DEVELOPMENT 80 Recommendations 95 Case Studies BEREA: ARTS AS ECONOMIC DEVELOPMENT OWENSBORO: TRAINING THE ARTISTS AND TECHNICIANS OF THE FUTURE PADUCAH: HOW TO BECOME A UNESCO CREATIVE CITY LOUISVILLE: A CONTEMPORARY ART CHAMBER OF COMMERCE 1 INTRODUCTION Mixed media work by Kathleen O’Brien, Harrodsburg 2 Photography by Ed Newell, Winchester A CALL TO ACTION FOR Looking across the breadth of the Commonwealth, KENTUCKY’S CREATIVE INDUSTRY it is readily apparent what sorts of creative entrepreneurship inspired this eff ort to conduct Evidence that arts and cultural activity are research that would lead to a deeper understanding signifi cant contributors to the national and state on the state’s multifaceted creative industry and economies has been largely anecdotal, until recently. its contributions to Kentucky’s economy and to its cities, towns, and urban and rural places. In December 2013, the United States Bureau of Economic Analysis and the National Endowment Th e creative industry thrives in Kentucky, playing for the Arts released results of the fi rst ever an important role in building and sustaining the in-depth analysis of the arts and cultural sector’s economic vibrancy of the communities in which contributions to current-dollar gross domestic it can be found. Th e industry creates jobs for product (GDP), a measure of the fi nal dollar value Kentuckians who spend money locally, pay taxes, of all goods and services produced in the U.S. and contribute to the quality of life where they live. According to prototype estimates, 3.2 percent — or With a rapidly changing economic structure, fi erce $504 billion — of current-dollar GDP in 2011 was global competitiveness for business growth and attributable to arts and culture. While the national development, and a future that will rely heavily on picture proved impressive, and came as no surprise ever-changing technology, the importance of using to those working in the fi eld, it further emphasized all available assets to further attain and sustain the need to investigate the arts and cultural success is critical. economy in Kentucky. Th e state’s creative industry is vital to developing With a successful background in cultivating and strong and meaningful partnerships that will lead developing Kentucky’s artistic and cultural assets, to positive outcomes for the Commonwealth’s the Kentucky Arts Council, the state arts agency, was future economic and community revitalization, inclined to undertake a quantifi able examination development and growth. of the economic sectors that are rooted in creativity and innovation, arts and culture, and design and Every place in Kentucky is a place where creativity production work, and additionally examine their lives. Th e research conducted for the purposes of support structures and ancillary businesses. Th ese this study also proves Kentucky is a place where entities together make up the state’s creative industry. creativity works when it’s given a seat at the table. 3 Kentucky Craft ed: Th e Market, Innovative Kentucky businesses A statewide network of Kentucky the state’s award-winning annual are exploring new ways to cities and towns is emerging and wholesale-retail market place of integrate artists and designers seeking ways to collaborate and visual art and craft , continues to into their creative teams, helping innovate together. All of these rank highly among the nation’s to accelerate the development of creative places have been recognized best visual art and craft markets. new projects and services. Artists for their innovative ideas and Workshops that guide artists in and entrepreneurs are working projects. Now they want to channel becoming creative entrepreneurs together to learn how to pitch their energy and the lessons learned are available throughout the state. their best ideas more eff ectively from their experiences toward to prospective investors. An making even more places across infl uential designer and gallery the Commonwealth economically owner is even talking with vibrant and resilient. Also, six Kentucky manufacturers to see certifi ed Kentucky Cultural how artists might take advantage Districts have been designated of underutilized industrial capacity and are taking shape in Bardstown, to fabricate limited editions of Berea, Covington, Danville, their best work. Maysville and Paducah. According to a recent New York Times article, Louisville ranks number one in the nation for its ability to attract and retain young college-educated people.1 And another recent study ranked Lexington seventh nationally among cities that are the best places for freelancers.2 Beyond the trends in Kentucky, fi ndings of two United Nations reports, published in 2008 and 2010, affi rm that the creative economy, globally speaking, is “not only one of the most rapidly growing sectors of the world economy, but also a highly transformative one, in terms of income-generation, job creation and export earnings.” Additional data published in May 2013 by the United Nations Conference on Trade and Development showed that the global creative economy more than doubled between 2002 and 2011. Its average annual growth rate during that period was 8.8 percent. Kentucky is doing many things to take advantage of its creative industry — and yet there is much more to be done to take full advantage of the Commonwealth’s creative assets as well as a rising tide of investment and creative accomplishment that has been building over the past few years. To sustain and build upon this sense of momentum requires a baseline assessment of the Commonwealth’s creative industry, as well as a profi le of emerging opportunities and challenges. With this assessment, it will be possible to measure its growth. It also can serve as an essential tool for planning, investment and policy development. 1. “Will Portland Always be a Retirement Community for the Young?” by Claire Cain Miller, New York Times, September 16, 2014. http://www.nytimes.com/2014/09/21/ magazine/will-portland-always-be-a-retirement-community-for-the-young.html?action=click&contentCollection= Health&module=MostEmailed&version=Full&region=- Marginalia&src=me&pgtype=article 2. Clark, Maggie and Divya Raghavan. Best Cities for Freelancers: NerdWallet, posted on February 25, 2014. Retrieved on September 24, 2014 at http://www.nerdwallet.com/ blog/cities/economics/best-cities-freelance-workers/ 4 Glass artist and Centre Collage professor Stephen Rolfe Powell Th is report provides that initial baseline assessment of Kentucky’s creative industry. As will be shown and explained more fully in the section on the economic importance of Kentucky’s creative industry, the direct employment in Kentucky’s creative industry, about 60,000 jobs, places it ahead of other important industries in the state, such as bioscience and auto and aircraft manufacturing, and ranks approximately on par with information technologies and communications, as well as with transportation, distribution and logistics. When one considers the full economic impact of the creative industry, including those in creative occupations who work in other industries, and the indirect jobs associated with suppliers to the creative industry and spending by those employed in the creative industry, the total state impact is 108,500 jobs. Th e report also documents insights and refl ections from many Kentucky artists, artisans, designers and entrepreneurs who work in creative enterprises as well as apply their skills and talents to strengthen other types of businesses across the state. Th is report profi les their insights and stories. In light of its data analysis and shared observations, as well as drawing upon models for creative enterprises and creative places that are found elsewhere, this Kentucky report presents targeted recommendations that provide strategies to leverage current assets and deepen the impact of the creative industry on Kentucky’s economy. Th e emerging story about Kentucky’s rising creative industry — derived both from the data and from the experiences of Kentucky’s people and places who are engaged with it — clearly points to the immediacy of the opportunity that it presents to the state and its citizens. Th at story is one of entrepreneurial energy, vividly apparent, for example, in nationally recognized creative places and among civic entrepreneurs who are redefi ning the role that artists and designers play in Kentucky businesses and local governments. It also emerges from the challenges present in rapidly evolving new technologies and the transition, in some parts of the state, from a regional economy dependent upon natural resources to one that will draw upon more diverse assets, talents and skills. Across this report’s analysis and recommendations, then, there is an underlying sense of urgency. Th e time for consideration, deliberation and action is now. And as the report’s recommendations will demonstrate, the key attributes of the creativity, design and small-scale prototyping, so characteristic of the creative industry itself, likely will be the tools that enable innovative cross-sector partnerships among artists, entrepreneurs, businesses, civic groups, and government to accomplish much that will encourage the sustained growth and development of Kentucky’s creative industry.
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