Building the Creative Economy on Prince Edward Island

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1 Building the Creative Economy on Prince Edward Island A Presentation by Andrew David Terris Principal, ARTS NOVA Cultural Research and Consulting Chair, Research Committee, Nova Scotia Cultural Action Network Culture PEI Forum Charlottetown, 24 September 2010

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4 Skate to where the puck is going, not to where it is

5 The fundamental nature of the economy is changing. So if we re smart, we ll skate to where the economy is going.

6 THE BIG QUESTION: Just where is the economy going??

7 The Creative Class

8 Workforce Comparison

9 Workforce Comparison

10 Workforce Comparison

11 Workforce Comparison

12 Workforce Comparison

13 The Creative Class The Creative Class consists of people who add economic value through their creativity whose economic function is to create new ideas, new technology, and/or new creative content. Richard Florida The Rise of the Creative Class

14 Transformation Economic crises tend to reinforce and accelerate the underlying, long term trends within an economy. Our economy is in the midst of a fundamental long term transformation, similar to that of the late 19 th century, when people streamed off farms and into new and rising industrial cities. In this case, the economy is shifting away from manufacturing and toward idea driven creative industries.

15 What is the Creative Economy? Developed countries are now functioning in a post industrial knowledge economy Knowledge itself has become a commodity and an important generator of economic value. There has been a marked shift away from capital intensive intensive production of tangible goods to the labour intensive intensive production of non tangible services. There is a growing demand for meaningful experiences There is a growing demand for meaningful experiences and greater value is being placed on expressive content in goods and services.

16 The Cast of Characters Part I The creative economy is commonly considered to include: Film production Broadcasting Sound recording Music publishing Written media Performing arts Visual arts and crafts Architecture Photography Design Arts Education

17 The Cast of Characters Part II Broader definitions of the creative economy also include: Museums Galleries Archives Libraries Advertising Fashion Video games Software design Scientific R&D

18 Creativity Human creativity is a defining feature of contemporary life, and it is powering one of the great economic changes of our time. Creativity and human talent, more so than traditional production factors such as labour and capital,, are fast becoming powerful engines of sustainable development. United Nations Conference on Trade and Development (UNCTAD) Creative Economy Report 2008

19 Global Impact The creative industries accounted for 3.4% of total world trade in 2005 The total value of all creative industries exports was $425 billion in 2005 The creative industries share of world trade increased almost 9% between 2000 and 2005 United Nations Conference on Trade and Development (UNCTAD) Creative Economy Report 2008

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22 Economic Impact in Canada In 2007 The culture sector was worth $84.6 billion that s 7.4% of GDP. The culture sector accounted for 1.1 million jobs that s more than the agriculture, forestry, fishing, mining, oil, gas and utilities sectors combined. The economic impact of Canada s culture sector is significant and it s growing. Conference Board of Canada Valuing Culture: Measuring and Understanding Canada s Creative Economy

23 Creative Economy HOW DOES THE CREATIVE ECONOMY WORK?

24 Throsby s s Model

25 Throsby s s Model

26 Throsby s s Model

27 Throsby s s Model

28 Throsby s s Model

29 Throsby s s Model Creative content originates in the core and filters out to other levels. Moving out from the creative core: Creative content is proportionately less. Number of creative workers is proportionately less. Commercial content is proportionately more.

30 The Real World Today the artist, tomorrow the world!

31 ipod Without the artists nothing! Without the cultural industries nothing! Without the creative industries nothing!

32 Understanding the Creative Economy The creative economy IS: built on a symbiotic relationship between art and industry. a global reality. large and growing. The creative economy WILL: play a major role in the economy of the future. play a major role in Prince Edward Island s future.

33 Why Build a Creative Economy? Important economic reasons: Fosters innovation Drives the economy Creates wealth Highly sustainable Low environmental impact Creates green jobs Global market reach via internet

34 Why Build a Creative Economy? Important non economic economic reasons: Enhances quality of place Improves quality of life Attracts business Draws immigrants Engages youth and promotes youth retention

35 Why Build a Creative Economy? Because Creativity is key to innovation and the future of economic development. The creative economy will be a pillar of the knowledge economy of the 21st century.

36 The Billion Dollar Question What does all this mean for Prince Edward Island?

37 Between 1996 and 2003: Economic Impact PEI had the second largest increase (55%) in culture output of any Canadian province and the largest of any Atlantic province. Growth in culture output exceeded PEI s overall GDP growth in all but two of those eight years. All 14 culture subsectors except one (Libraries) experienced increases in output. Annual household spending on culture goods and services increased 54% to $81 million. Federal culture expenditure in PEI increased 31% to $131 per capita major recipients were Heritage and Broadcasting. Provincial culture expenditure increased 15% to $86 per capita major recipients were Heritage and Libraries.

38 In 2003: PEI generated $107 million in culture output (3% of GDP). Economic Impact 1,800 Islanders worked in the culture sector (3% of total employment), and the majority were employed full time. PEI ranked second in Canada for per capita federal expenditure on culture. PEI ranked fourth in Canada for per capita provincial expenditure on culture. Written Media, Broadcasting and the Film Industry ranked highest for output. Written Media, Film and Design were the top three culture employers. Culture products accounted for 3% of all household expenditures. Source: Statistics Canada, Economic Contribution of the Culture Sector to Canada s Provinces (2007)

39 Infrastructure Institutions Organizations Festivals Confederation Centre Culture PEI Jazz and Blues Festival The Guild Music PEI Indian River Festival Harbourfront Theatre PEI Council of the Arts Festival of Small Halls UPEI Holland College PEI Crafts Council PEI Interactive Media Alliance

40 Policy

41 Policy

42 Recommendations In order to facilitate the development of the Island s creative economy, the Government of Prince Edward Island should: 1. Devise a Creative Economy Development Strategy to ensure that provincial policies and programs maximize the effectiveness of public support for the arts, cultural and creative industries. 2. Appoint a Creative Economy Task Force to work with government to oversee the rapid development and implementation of the strategy.

43 Creative Economy Strategy Four Main Objectives Building a creative economy should: 1. Make a net contribution to economic prosperity. 2. Create sustainable, environmentally responsible economic activity. 3. Generate high quality work that provides sustainable incomes. 4. Initiate activities appropriate to PEI culture and society.

44 Creative Economy Strategy Five Key Measures 1. Support for creators and creative R&D 2. Creative industries investment funds 3. Creative industries tax credits 4. Infrastructure development funds 5. Stabilization and development funds for nonprofit cultural enterprises

45 Creative Economy Strategy Program Integration and Delivery Throsby s Concentric Model Creative sector is an integrated and interdependent economic entity. Effective Support Requires a holistic overview, integrated policies, and comprehensive programs.

46 Creative Economy Strategy Program Integration and Delivery Single Agency All programs in support of the sector should be the responsibility of a single Creative Economy Development Agency. Broad, Independent Mandate The agency should operate at arm s length from government and be responsible for promoting growth in all aspects of the creative sector.

47 Creative Economy Strategy Program Integration and Delivery Model Delivery Agencies Integrated creative economy agencies exist in other jurisdictions Examples OMDC in Ontario and SODEC in Quebec The most highly integrated is Creative Scotland, an arm s lemgth agency which was established by the merger of the Scottish Arts Council and Scottish Screen.

48 Creative Economy Strategy Tracking Performance Improvements Needed The collection of cultural statistics is irregular and haphazard and must be significantly improved. Data Collection Sectoral development requires regular, reliable, comprehensive data collection so that the impact of sectoral initiatives can be tracked, compared, and evaluated

49 Why Build A Creative Economy on PEI? Because a creative PEI economy will: Increase GDP, foster productivity, and create new employment. Build and diversify the sustainable economy of the future. Foster a culture of creativity and innovation. Build on the sustainable cultural and creative resources that PEI already has. Take PEI s culture and creativity to the world. Make PEI a better and more desirable place in which to live.

50 Thank You! Building the Creative Economy on Prince Edward Island A Presentation by Andrew David Terris Principal, ARTS NOVA Cultural Research and Consulting Chair, Research Committee, Nova Scotia Cultural Action Network Charlottetown, 24 September 2010

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