Arts and Economic Development: Looking Closer at Washington State's "Creative Economy"

By Valerie Grigg Devis

 

When it comes to economic development, I think about two kinds of individuals who make an essential contribution to any economy: entrepreneurs and artists. Why? Because entrepreneurs & artists each create something new…and this is what actually grows an economy.

 

Entrepreneurs, of course, get plenty of attention for their economic contributions. But artists? For starters, just think about what is being sold on the internet: music; clothing; home furnishings; movies; and books.

 

Then ask yourself why people travel to cities like New York or Rome: So they can attend the theatre, admire the architecture and public art, visit a museum, take in a concert or film festival. (OK, and maybe to cheer their favorite sports team – supported by a team of designers who created the stadium, uniforms, logo, mascot, etc.) The economic contributions of artists surround us.

 

Statistically, arts-related jobs represent about 2 percent of the 3.2 million jobs in Washington State, a seemingly small number. But remember: These jobs are making the economic “pie” bigger - thereby creating jobs for the rest of us.

 

Demographic trends are a strong predictor of our economic future, and, as most of us are aware, the United States is experiencing an aging population. Consumer studies show that as we grow older, our spending patterns shift from “stuff” to “experiences”.

 

For more information about the economics of Art, I’d like to introduce you to the Creative Vitality Index (CVI). This survey is conducted by the Washington State Arts Commission, The CVI to measures the economic impact and well-being of the Arts in Washington State in terms of for-profit and nonprofit arts-related creative enterprises, and the service activities that sustain them. The Index weighs two factors:

 

1. An Occupational Index that compares the concentrations of arts related employment at the state and local levels with the nation as a whole

 

2. The Community Arts Participation Index, which measures indicators that point to the degree of connectedness between local residents and the arts.

 

The CVI is used nationally, so it enables comparison of the Arts Economy at the State and regional level, as well as historic trends.

 

In the Pacific Northwest, a graphic artist makes about $45,000 - a “living wage” in today’s economy. According to 2004 CVI survey, there were 66,170 art-related jobs in Washington, including 5,927 graphic artists.

 

The CVI also tells us that the Creative Economy in Washington stacks up relatively well compared to other States. The Washington State Creative Vitality Index for the 2004 calendar year was 1.33. (compared to a national average of 1.00) To me, this suggests that we can “leverage” existing assets by encouraging this sector of Washington’s economy to grow and thrive.

 

An update of the CVI is expected out later this year. For communities interested in making the creative economy an integral part of their Economic Development strategy, this report should be of interest.

 

Author Valerie Grigg Devis is a Senior Planner of Growth Management Services at the Department of Community, Trade and Economic Development. This article first appeared in the Winter 2008 edition of About Growth.