CLUSTERS of
CREATIVITY
Clusters of Creativity:
The Role of the Arts and Design
in
North Carolina’s Economy
April 2007
Submitted to the North Carolina Arts Council
by
Regional Technology Strategies, Inc.
205 Lloyd Street, Suite 210
Carrboro, North Carolina 27510
www.rtsinc.org
Contents
Acknowledgements...6
Preface and Major Findings...7
Introduction...8
Why Examine the Creative Economy Defining the Creative Enterprise Profiling North Carolina’s Creative Enterprise Economy...13
The scale of the creative enterprise economy in North Carolina Sub-clusters within North Carolina’s creative enterprise cluster Creative enterprises in North Carolina’s economic development regions Networks and associations in the state’s creative enterprise economy Public and Nonprofit Sector Contribution to North Carolina’s Creative Economy...35
Impact of Arts-Based Economic Activity...48
Conclusion and Next Steps...54
Appendices ...60
Appendix A: Annotated Bibliography Appendix B: Definitions
Appendix C: Maps
Appendix D: Occupational Data Appendix E: Methodology
Appendix F: Community Creative Assets Appendix G: Case Studies
Acknowledgements
This project was carried out with support from the North Carolina Arts Council, a division of the Department of Cultural Resources. We owe special thanks to Mary Regan, Executive Director, N. C. Arts Council, Research Director Ardath Weaver, and Maryanne Friend for their advice and assistance throughout the process.
An expert group of advisors assisted in defining the parameters of the study. The group consisted of the following individuals, all of whom have extensive knowledge of creative economies,
regional development and/or data analysis. We extend particular thanks to them for their time and invaluable input.
• Chris Beacham, formerly of North Carolina Department of Commerce, Raleigh, NC; now of RTS
• Joe Cortright, Impresa Consulting, Portland, OR
• Robin Keegan, formerly of Center for an Urban Future, New York, NY; now of Louisiana Recovery Authority
• Neil Scott Kleiman, Center for an Urban Future, New York, NY • Catherine Moga, North Carolina Rural Center, Raleigh, NC • Beth Siegel, Mt. Auburn Associates, Boston, MA
• Heidi Stieber, formerly of North Carolina Department of Commerce, Raleigh, NC • Tim Wojan, Economic Research Service, USDA, Washington, DC
The research and the writing of the report were carried out by the staff of RTS. Sarah Butzen, Stuart Rosenfeld, and Linda Swanson were the primary authors of the final memo. In addition, Johannes Traxler completed most of the data analysis and industry mapping, and Traxler , Rachel Fleming, and Dan Broun contributed to parts of the final memo. Rachel Fleming also conducted the literature review and contributed to the overall analysis.
We also wish to thank Tim Wojan for the USDA data, Carla Abramczyk and Jean Marie Livaudais at the North Carolina State College of Design, and the many local arts council directors and development agencies who provided us with valuable information.
Regional Technology Strategies, Inc. (RTS) April 2007
Preface
Only quite recently have cities, states, and regions begun to recognize the value and contributions of the arts. Although arts organizations have made the case for economic relevance for some time, it has taken the burgeoning specter of globalization to get the attention of regional economists, business schools, and state governments. Richard Florida’s book The Rise of the Creative Class has perhaps had the most influence on policy, but similar ideas had been percolating for at least a decade on many fronts both in the United States - particularly New England - and Europe, where arts have always been more central to
economic development.
It was under these conditions that the North Carolina Arts Council contracted with RTS to help the state begin to better understand the arts not only as an amenity, in which
capacity they play an important economic role, but also as an engine for economic development and potential response to the effects of globalization. RTS was charged with creating a model to describe the scale, scope, and geographic distribution of the segment of the state’s economy that is driven by aesthetic content and to search for significant
secondary effects.
The study provides a starting point for North Carolina to consider new ways that the arts can simultaneously boost regional economies, create job opportunities, and
improve qualities of life.
Major Findings
• Creative enterprises include a wide range of industries, many of which are not usually considered artistic.
• Commonly available data sources miss much significant creative and artistic activity. • Nearly 47,000 people are employed in the core creative enterprise cluster, 159,000 in
the full cluster.
• The income generated by these jobs totals $3.9 billion.
• Creative enterprises are highly concentrated in some areas of the state thought to lack economic vitality.
• Among the factors examined, only the number of arts and design workers has a significant impact on tourist spending.
• The presence of these workers is also strongly associated with rising household incomes.
I. Introduction
A. Why Examine the Creative Economy?
North Carolina has long been well known for its success in manufacturing, first non-durable goods and later technology-intensive products. But the state is also known for a rich cultural heritage that is rooted in its history and the arts. For the second half of the twentieth century, manufacturing was considered its economic base, the arts its cultural base. The state’s two assets remained separate and unequal—as resources streamed into the economic base but only slowly trickled into the cultural base. That imbalance has begun to shift, however, as mass production industries continue to contract while creative industries expand. Creative enterprises now affect North Carolina’s economy in significant ways: even looking only at wages (including receipts for the self-employed), the creative enterprise cluster infused more than $3.9 billion into North Carolina’s economy.
As globalization brings advanced economies into ever closer competition with each other, creativity is becoming an increasingly critical competitive advantage. The stature of the arts is rising substantially with respect to economic development, for a number of reasons. First, the arts represent a direct source of jobs and wealth that is undervalued and undercounted as a share of local economies. The people and companies that produce and use art or
design—for example, the artists, performers, architects, publishers, graphic designers, animation, and advertising agencies—and those that produce films and videos, leisure
software, fashion apparel, and ornamental woodwork together make up large shares of many regional economies. Some of the creative industries are widely recognized; for
example, the global market for the music industry last year was $37 billion. But many of the companies and individuals who earn livings from the arts are micro-enterprises, freelancers, entrepreneurs, secondary businesses, or classified with non-arts-related sectors, and thus the true scale of the creative economy is nearly always vastly underestimated.
Secondly, when the arts or design are embedded in products and services, they can provide a
competitive advantage that can resist globalization tendencies. Arts and design can be used in products and packaging to create emotional associations with and value to
consumers based on appeal or connections to company, brand, designer, or place. The hosiery companies around Hickory are moving towards higher-end designs to establish
niches in shorter-run, designer, higher-priced goods.
The third reason is that creative economies result in induced economic benefits. Amenities and other distinguishing local cultural or creative features that are often linked to arts and culture are important factors in attracting and keeping talented people and companies. Young and talented personnel are quite mobile and tend to go where there is a vibrant and creative environment. Technology-intensive companies, therefore, also look for this creative milieu that can both inspire and attract talent.
The fourth reason, which is beyond the scope of this study, is that artistic talent is becoming an asset to a wide range of employers who thrive on creative approaches to their businesses and are beginning to value the right-brain skills associated with the arts. Harvard Business School professor Rob Austin writes in Artful Making that “knowledge work, which adds value in large part because of its capacity for innovation, can and often should be structured as artists structure their work.” It creates form out of disorganized materials, as opposed to
“industrial making,” which emphasizes detailed planning.
The arts, like other industries, tend to cluster around common creative themes. Ceramics around Seagrove, designer socks in the Catawba River Valley, music in the Triangle, film in Wilmington, and glass in the Toe River valley are examples of local creative clustering. Whereas a creative economy is the sum total of its creative enterprises, a creative cluster includes all of the
companies that contribute to the success of creative enterprises—their suppliers, accountants, lawyers, teachers, associations, guilds, producers, and distributors. Therefore, it is important to know not only what the state’s creative economy is, but also what and where its areas of specialization are—and what the components are that make up the cluster.
To increase their understanding of these creative clusters in North Carolina, the North
Carolina Arts Council contracted with Regional Technology Strategies to (a) define the scope and scale of North Carolina’s creative economy, (b) look for evidence of clustering within the state, and (c) assess the cluster’s role in the statewide economy. Estimating the scale of companies or individuals that are distinguished by the value of their creative
content is in itself a “creative” endeavor since most companies or occupations are not defined in this way in the available data. Thus, the initial challenge was defining the target population of companies and individuals in ways that lend themselves to rigorous analyses.
B. Defining the Creative Enterprise
The creative enterprise is a relatively new and different way of classifying businesses and
defining economies. Because its parameters are continually evolving and often intuitive, there are not yet universally accepted criteria or standards for what constitutes a creative enterprise, and, therefore, a creative economy.
Most analyses of the contributions of the arts and design to an economy begin by selecting classes of either employees or companies according to industry or occupational
classification systems that are based on how individuals or businesses choose to identify themselves for Census or tax purposes. But, except for the work of the pure artist, most classification systems do not reflect the artistic content or value of a product, service, or occupation. An occupational classification must be based on a narrow definition of
creativity, missing the crucial aspects of clusters: the supplier, supporter, and disseminator roles in the creative process that are not clear from an occupational classification.
Consequently, defining creative industries is the first step in discovering creative clusters. From that base, the industries that play supplying, supporting, and disseminating roles can be identified. The task of defining the creative enterprise economy requires (1) a means to identify the
industries whose members have sufficient artistic content or value to be considered creative enterprises, (2) data sets that capture the entire gamut of enterprises from
part-time, self-employed through multi-national branches, and (3) a way to identify firms that have a distinctive creative dimension that is secondary, not primary, or applies to some, but not all, products or services. Obviously, not all who work in creative industries are artists or designers, yet their jobs are critical to the successful functioning of those industries. Creative industries employ secretaries, production workers, and salespeople as well as furniture designers or web designers; contributors in various roles are included in our analysis of creative industry employment. These workers are included because they are part of the creative enterprise and to show the full job creation effects of these enterprises.
The initial priority of the study was to establish criteria or principles, based on the degree to which art and design are interwoven into a given industry’s products and services, for
including industries in the creative enterprise economy. The set of industries that meet the criteria collectively comprise the state’s creative enterprise economy. Where concentrated, these industries are treated as a creative enterprise cluster, which is a set of geographically bounded, interrelated creative companies. In a cluster, geographic limits are loosely set by commuting patterns; social, civic, and business relationships; and an individual’s or business’ regional identity. From a cluster perspective, it is not only art-producing industries that are of interest, but all of the industries that supply them with materials and equipment, reproduce their goods, distribute or sell their goods and services, and support them in a variety of ways. Capturing the connections and relationships among the enterprises in these industries is critical to understanding the role that arts and design play in the larger economy.
After examining the growing U.S. and international literature on creative economies (see Appendix A for an annotated bibliography), consulting with national experts, and
considering the strengths and weaknesses of existing data sets, the study establishes a set of parameters and measures for North Carolina. Its definition of the state’s creative enterprise economy is based on the following set of principles that guide the inclusion of industries in the definition of arts- and design-based industries. Since there are no national data with which to actually measure the degree of arts and design in products and services, however, defining a creative economy requires some subjective judgment.
An industry sector is included if it falls into one or more of the following categories: • Creation: Originates artistic intellectual property
• Production: Produces art- or design-based goods or services • Dissemination: Delivers art- or design-based product to the public
• Inputs: Materials, supplies, parts, or equipment used by the above categories
• Support: Institutions and infrastructure that facilitate and provide services to arts- and design-based activity
When developing a definition of creative enterprise derived from industry categories1 (in this
case, six-digit North American Industry Classification System [NAICS] codes) that are based on criteria other than creativity, the need for precision and the need for comprehensiveness must be balanced. If the list of included industry categories is too restrictive, some relevant enterprises and their contributions will be left out of the analysis. If it is too broad, the study runs the risk of losing credibility by including sectors in which creative content is marginal or questionable. The industry categories are based on previous studies of creative economies as well as on the guidance of a team of experts who served as advisors in conceptualizing the research and creating the definition. The final selection was based both on the above input and knowledge from RTS’ and other studies about how industry clusters function.
This study addresses the needs for precision and comprehensiveness by using a dual structure comprising a core definition and a full definition. The core definition uses a narrower set of industry categories; most or all of the enterprises in these categories are
certainly arts- and design-based, but some arts- or design-based enterprises – those that are in industries that are primarily made up of non-creativity-based firms – are surely left out. The full definition is a broader set of categories; it captures most or all arts- and design-based industries, but almost certainly includes some enterprises that are not related to arts and
design. Most of the analysis in the study will begin with the core definition to show the minimum amount of arts- and design-based activity taking place, then compare it to the expanded definition. Both the core and full definitions are applied to each of the five categories outlined above (see Table 1).
Table 1:
Examples of Creative Enterprise Industries, Core and Full Definitions
Principle Core Cluster Full Cluster
Creation Graphic Design Services
Independent Artists, Writers, and Per-formers
Musical Groups and Artists Advertising Agencies
Artisanal Beverages
Production Jewelry (except Costume) Manufacturing
Record Production Dance Companies Book Publishers
Custom Architectural Woodwork Commercial Lithographic Printing
Dissemination Art Dealers
Motion Picture and Video Distribution
Libraries and Archives
Inputs Musical Instrument Manufacturing Photographic Film, Paper, Plate, and Chemical Manufacturing
Support Fine Arts Schools Museums
Note: The complete list of industries included in the creative cluster, which is shown in
Appendix B, comprises 76 industries. Source: 2006 ES-202 data gathered by the North Carolina Employment Security Commission and 2004 Census non-employer data.
The study further disaggregates the creative economy according to three different kinds of art- and design-based activities based on the form of art being pursued: (1) arts, or
enterprises that produce art objects such as painting or sculpture; (2) entertainment and new media, or enterprises that produce or use art and design in an entertainment-related medium; and (3) design, or enterprises that apply art and design in other products and
services. These sub-cluster categories were chosen for their easy applicability for anyone familiar with the arts and for their comprehensive inclusion of all the industries in the full
creative industry cluster. (See Appendix B for a full listing of the industries included in each sub-cluster.)
II. Profiling North Carolina’s Creative Enterprise Economy
To describe the scale, geography, and concentrations of arts- and design-related economic activities in North Carolina, RTS combined data from different sources. Because so many of the creative enterprises are microenterprises, freelancers, and independent entrepreneurs—and sometimes part-time—the analyses had to look for sources to supplement the conventional employer-based industry data. To present as accurate a picture as possible, the study combines North Carolina’s database of establishments with employees, Census reports on businesses with no employees, and companies that would be included on the basis of a
secondary industry classification. Even these sources, however, miss many creative enterprises for reasons that will be discussed.
The available data are analyzed to present as comprehensive a picture of North Carolina’s creative enterprise economy as possible. The analysis incorporates four perspectives: (A) a statewide overview of the scale of the clusters in North Carolina, the industries that comprise them, where these industries are clustered, and who the workers are that drive the clusters; (B) an analysis of the three sub-clusters that make up the creative enterprise clusters, which industries comprise them, and where in the state they are most strongly clustered; (C) a
regional view of the state that shows which sub-clusters are strongest in each region and which industries are driving that strength; and (D) a discussion of the networks, organizations, and other associational structures that are so critical to holding the creative enterprise cluster together in North Carolina.
A. The scale of the creative enterprise economy in North Carolina
Key Findings:
• Nearly 47,000 people are employed in the state’s core creative enterprise cluster, 159,000 in the full cluster. Due to undercounting by secondary data sources, however, the actual number of creative enterprise employees is likely much higher.
• Nearly half of those employed under the core definition are in firms without employees other than family members or apprentices and are not included in conventional em ployer databases.
• The total wages or income of those employed in creative enterprises in 2006 totaled more than $3.9 billion.
• The core of the creative enterprise economy is dominated by independent artists, writers and performers and creative services, the majority of which are self-employed or are micro-enterprises that are not captured by conventional employer analyses. • Manufacturers that rely on arts and design for their competitive advantage are not
included because there are no markers or codes that make this distinction; they can only be identified through industry surveys, which results in an underestimation of the
scale of the creative economy.
• North Carolina’s “core” creative enterprise cluster employs more people than
biotechnology, computers and electronics, machinery, or transportation equipment.
Creative enterprises in North Carolina are, collectively, big business. For a long time, the arts had been perceived as lifestyle and cultural amenities, but not as a significant economic
activity. This notion was challenged most recently by analyses conducted by Americans for the Arts. Using Dun and Bradstreet data, they identified 548,000 businesses involved in the production of the arts (4.3 percent of all businesses), which employ almost three million people nationwide. Even those numbers are low, however, because they miss the large numbers of micro-enterprises and independent artisans who never register with Dun and Bradstreet. In order to capture the scope and scale of creative enterprises in North Carolina, this study integrates non-employer data to capture the micro-businesses and “self-employed”2 entrepreneurs in arts- and design-based
industries. It also makes use of both primary and secondary NAICS codes, to capture businesses that engage in arts-based activities but not as their primary goods or services. These analyses show that:
• Nearly 47,000 people statewide are employed in North Carolina’s core creative enterprise cluster.
• Of these, 28,325 are employed in 4,934 establishments. The remaining 18,494 are self-employed—a proportion much higher than that found in most other industry
sectors.
• The full cluster employs 158,632 people. Most of the gain is concentrated in
establishments with employees, which rise to 10,514 and employ 135,386 people. The number of self-employed in the full cluster is 23,246.
Industries in North Carolina’s Creative Enterprises Cluster
The state’s entire creative enterprise economy comprises 76 industries and spans services, manufacturing, and retail sectors. (See Appendix B for the complete list.) Table 2 shows all of North Carolina’s creative enterprise industries grouped into eight major categories, and Table 3 shows North Carolina’s industries with the most employment in the core creative
enterprise sectors (i.e., those in which most or all enterprises are dedicated to arts- and design-based activities).
Table 2: Overview of North Carolina’s Creative Enterprise Industries
Category Establishments Employment in
Establishments employmentSelf- Total
Design manufacturing 301 10,805 * 10,805 Artists 333 1,821 12,463 10,642 Design services 3,246 8,810 5,544 14,354 Other services 1,518 12,814 3,171 15,985 Retail 2,582 14,779 3,417 18,196 Information and entertainment 928 26,822 243 27,065
Public sector and
education 23,511 0 23,511
Publishing and printing 972 36,025 229 36,254
Total 9,880 135,387 23,246 158,633
*Self-employment not reported in this category.
The core creative enterprise cluster includes large numbers of independent artists and service industries such as architecture and interior design. One of the most striking
characteristics of the core creative economy is, in fact, the dominance of micro-enterprises and individual or family businesses. In interior design services, for example, more than three-fourths of the reported jobs would not have been included if only employer-based data had been used. Moreover, the industries dominated by the self-employed are very likely to be vastly undercounted, since the industry classifications are self-selected in individual tax returns.
In half of the counties in which local arts councils supplied independent counts of working artists, the totals were much larger than the number in the official secondary statistics. The true number of artists in Mitchell and Yancey Counties, for example, is more than double the number reported by the federal government. Reasons for the undercount include the self-classification of artisans in their tax returns into industry categories in which art is indistinguishable from standardized
Table 3: Top Industries in North Carolina’s Core Creative Economy
Industry Employment in
Establishments Self-Employment Total
Independent Artists, Writers, and
Performers 437 10,233 10,670
Specialized Design Services 2,766 3,322 6,088
Architectural Services 4,550 862 5,412
Advertising 5,288 * 5,288
Photography Services 2,192 1,713 3,905
Landscape Architectural Services 1,494 1,360 2,854
Ornamental and Architectural Metal
Work Manufacturing 2,785 * 2,785
Fine Arts Schools 2,107 * 2,107
Theater and Performing Arts
Companies 1,384 409 1,793
*No self-employment data reported for this industry.
Few manufacturing industries are major employers in the core cluster; however, these may also be undercounted due to the lack of disaggregated data on individual artists and artisans.
The primary difference between the core and full cluster is the expansion into manufacturing and retail sectors. These sectors include several industries that are critical to the functioning of the creative enterprise cluster, that either reproduce creative content or rely on it for competitive advantage. Book publishing, for example, falls into the production category of the creative enterprise cluster, serving to reproduce original works of writers, artists, and composers. It relies on creative content to compete and plays a critical role in the process by moving the original creative artifact from the artist to the marketplace, converting an artistic activity into an economic activity. Without this step, the activity has artistic relevance, but not economic relevance. The industries in the wider cluster thus play a crucial role in the creative enterprise cluster. Conversely, the core industries play a crucial role in the wider cluster; without the creative content that drives industries such as book publishing, their economic impact would be close to zero.
Table 4: Top Industries in North Carolina’s Full Creative Economy
Industry Employment in
Establishments Self-Employment Total
Publishing 20,324 # 20,234 Printing 15,702 229 15,931 Broadcasting 10,909 * 10,909 Software Publishers 6,798 * 6,798 Jewelry Stores 4,337 650 4987 Book Stores 3,320 275 3,595 Florists 2,552 797 3,349
Other Pressed and Blown Glass and Glassware Manufacturing
2,727 * 2,727
Arts Promoters and Agents 1,239 1,096 2,335
*No self-employment data reported for this industry.
To place the creative enterprise economy in context, represented by both its core and full definitions, it is compared with other industries important to North Carolina (Table 5). Even when limited to core industries, North Carolina’s creative enterprise economy employs more than the technology-intensive manufacturing sectors of pharmaceuticals and computers and electronics. Other manufacturing sectors, such as machinery and transportation equipment, employ roughly 25 percent fewer North Carolinians than do creative sectors. When the cluster is considered in its entirety, it employs more people than any other sector shown. The comparison sectors, however, are larger-scale industry categories than the creative enterprise cluster comprises. This comparison thus is not presented as a ranking but to give a sense of the scale of North Carolina’s creative activity and its relative importance to the statewide economy. The biotechnology industry is not included in the above list due to lack of comparable data, but the North Carolina BioNetwork recently estimated that biotechnology employs about 34,000 people in North
Table 5: North Carolina’s Creative Enterprise Economy
Compared to Other Industries
Industry Employees % of Total
Employment Establishments Establisments% of Total Creative Enterprises (core) 46,819
Creative Enterprises (full) 158,632 Textile Mills and Textile
Product Mills 86,477 2.4% 1,458 0.2%
Apparel Manufacturing 30,858 0.9% 1,146 0.2%
Furniture and Related
Product Manufacturing 61,866 1.7% 1,256 0.2%
Machinery Manufacturing 31,660 0.9% 2,427 0.3%
Transportation Equipment
Manufacturing 33,053 0.9% 530 0.1%
Computer and Electronic
Product Manufacturing 41,156 1.1% 586 0.1%
Pharmaceutical and
Medicine Manufacturing 21,163 0.6% 98 0.0%
Source: 2003 ES-202 data gathered and analyzed by the North Carolina Employment Security Commission and 2000 Census non-employer data.
Employment (including
B. Sub-clusters within North Carolina’s creative enterprise cluster:
distinguishing among different types of creative enterprises
To better understand differences among types of creative enterprises, the sectors in the full creative enterprise economy were further divided into three sub-clusters: the arts,
entertainment and new media, and design. These sub-clusters are not mutually exclusive and in a few instances sectors fit the definition of more than one sub-cluster (e.g., businesses in the category of China, fine earthenware, and other pottery products fall into both the arts and design sub-clusters). The arts sub-cluster includes categories of artists, artisans, and crafts makers, along with their support structures and distributors, such as galleries and museums. The entertainment and new media sub-cluster includes categories related to theater, movie, video, and music industries, along with their suppliers and distributors. The design sub-cluster includes categories such as architects, interior designers, web designers, and fashion apparel.
Composition and characteristics of sub-clusters
The design sub-cluster and the entertainment and new media sub-cluster are close in size, with the design sub-cluster accounting for nearly 55,000 of North Carolina’s creative enterprise employment and entertainment and new media accounting for nearly 53,000. (Tables 6 – 8). The arts sub-cluster, while smaller in scale and scope, helps to develop the core of the creative capacity that feeds the other two sub-clusters.
The arts sub-cluster is largely independent artists, writers, and performers (Table 6). Because this industry is dominated by the self-employed, the arts sub-cluster as a whole has a much higher percentage of self-employment in its ten largest industries. Because of the inclusion of artisan-based industries such as woodcrafting and pottery (to the extent that the data allow), and because of the consideration of input industries such as photographic supplies, the arts sub-subcluster also has a much greater representation in manufacturing than the other sub-clusters.
Table 6: Top Industries in North Carolina’s Arts Sub-cluster
Industry Employment in
Establishments Self-Employment Total
Independent Artists, Writers, and
Performers 437 10,233 10,670
Jewelry Stores 4,337 650 4,987
Photography Services 2,192 1,713 3,905
Ornamental and Architectural Metal
Work Manufacturing 2,785 * 2,785
Other Pressed and Blown Glass and
Glassware Manufacturing 2,727 * 2,727
Fine Arts Schools 2,107 * 2,107
Vitreous China, Fine Earthenware and
Other Pottery Product Manufacturing 1,708 * 1,708
Sewing, Needlework, and Piece Goods
Stores 1,230 396 1,626
Museums 1,587 * 1,587
Photofinishing 937 362 1,299
Grantmaking Foundations 891 * 891
Art Dealers 440 406 846
Custom Architectural Woodwork and
Millwork Manufacturing 766 * 766
Other Grantmaking and Giving Services 682 * 682
Photographic Film, Paper, Plate, and
Chemical Manufacturing 589 * 589
Table 7: Employment in North Carolina’s Entertainment and New Media
Sub-cluster
Industry Employment in
Establishments employmentSelf- Total
Publishing 20,324 * 20,324
Broadcasting 10,909 * 10,909
Software Publishers 6,798 * 6,798
Book Stores 3,320 275 3,595
Arts Promoters and Agents 1,239 1,096 2,335
Theater and Performing Arts
Companies 1,384 409 1,793
Cable and Other Program Distribution 1,289 * 1,289
Libraries and Archives 1,257 * 1,257
Motion Picture Industries 577 565 1,142
Prerecorded Tape, Compact Disc, and
Record Stores 855 120 975
Musical Instrument and Supplies Stores 771 189 960
Music Production Industries 454 243 697
Internet Publishing and Broadcasting * 457 * 457
Musical Instrument Manufacturing 133 * 133
*No self-employment reported for this category.
The entertainment and new media cluster has the smallest representation of industries that fall into the original creation or production category of creative enterprises (Table 7).
A prominent difference among the sub-clusters is the degree to which they include original creation or production of an art- or design-based product. Despite the independent
artists who are the foundation of the arts sub-cluster, the design sub-cluster has the greatest proportion of creation and production employment, with the large majority spread across service and manufacturing industries. The arts sub-cluster has more than half of the
employment in its ten largest industries in creation and production; the largest single
category is independent artists, but printing, manufacturing, and service industries contribute as well. Only about a third of the entertainment sub-cluster’s employment is in creation/
production, most of which comes from theater companies, with sound recording and motion picture facilities also contributing.
Table 8: Top Industries in North Carolina’s Design Sub-cluster
Industry Employment in
Establishments Self-Employment Total
Printing 15,702 229 15,931
Specialized Design Services 2,766 3,322 6,088
Architectural Services 4,550 862 5,412
Advertising 5,288 * 5,288
Jewelry Stores 4,337 650 4,987
Florists 2,552 797 3,349
Landscape Architectural Services 1,494 1,360 2,854
Ornamental and Architectural Metal
Work Manufacturing 2,785 * 2,785
Other Pressed and Blown Glass and
Glassware Manufacturing 2,727 * 2,727
Sewing, Needlework, and Piece
Goods Stores 1,230 396 1,626
Artisanal beverages 1,217 * 1,217
Custom Architectural Woodwork and
Millwork Manufacturing 766 * 766
*No self-employment reported for this category.
C. Creative enterprises in North Carolina’s economic development regions
Key Findings:
• The Advantage West region has the highest rate of creative self-employment in the state, due primarily to the large number of independent artists working there. Its rural counties, as well as its metro center in Buncombe, show strong concentrations in the arts sub-cluster.
• Mecklenburg County leads the Charlotte metro region, with strong concentrations in commercial lithographic printing and photo processing laboratories. Cleveland
County is highly concentrated in the arts and design sub-cluster due to its pressed and blown glass manufacturers.
• The Piedmont Triad region’s creative enterprise cluster merges with that of the Research Triangle and is led by its two metro counties, Guilford and Forsyth, which have strong concentrations in several printing industries. The Research Triangle
sub-clusters are anchored by Wake and Durham, but smaller counties such as Orange and Harnett show the highest concentrations in the arts and design sub-clusters.
• The Northeast region shows high concentrations in some industries in the creative
enterprise sub-cluster, but these are based on low employment numbers. The Eastern region also has low employment numbers, but shows some significant activity in the
To give a sense of how different areas of the state are participating in the creative enterprise clus-ter, RTS calculated employment levels and concentrations in the cluster industries for each of the state’s seven economic development regions. A primary tool in interpreting the data were sev-eral maps that present the state’s concentrations in the core cluster, the full cluster, and each of the sub-clusters, found in Appendix C. The sections below discuss what the quantitative analysis revealed and the maps show about regional creative enterprise activity.
Advantage West
This Appalachian mountain region has the state’s highest concentrations of art and design activ-ity (using the full creative enterprise cluster as the basis of measurement). HandMade in America, based in Asheville, has brought national attention to the region and to arts and crafts as a source of growth. Though much of the arts and design activity in this cluster is concentrated in rural ar-eas, there is also some metropolitan representation in the core cluster. There appears to be some overlap in this Advantage West cluster with the Charlotte economic development region in the Hickory and Charlotte urban areas. For instance, the grouping of Polk, Rutherford, and Cleveland counties cross into the Charlotte metro area. Caldwell is the only county in Advantage West that is not identified in either the core or the full cluster as having high arts and design activity.
Most of the creative enterprise activity in the region is in the arts sub-cluster, with much less activ-ity showing in the entertainment and new media sub-cluster. In the arts sub-cluster, Buncombe County, unsurprisingly, leads the region; not only is it the home of the region’s only metro region, Asheville, but also of one of the strongest and fastest-growing centers of artistic activity in the country. In Buncombe, commercial lithographic printing is the largest industry in terms of employ-ment; close behind it is independent artists and musical performers. For nearly every other county in Advantage West, it is the presence of independent artists and performers that is driving the strength of the cluster.
Table 9: Top Industries in the Creative Economy of Advantage West
Industry Employment in
Establishments Self-Employment Total
Publishing 2,227 * 2,227
Independent Artists, Writers, and Performers 37 1,677 1,714
Printing 1,297 30 1,327
Broadcasting 716 * 716
Libraries and Archives* 694 * 694
Specialized Design Services 241 325 566
Architectural Services 333 113 446
Jewelry Stores 331 113 444
Florists 274 123 397
Cable and Other Program Distribution 372 * 372
Book Stores 260 72 332
Photography Services 146 179 325
Landscape Architectural Services 115 167 282
Advertising 275 * 275
Sewing, Needlework, and Piece Goods
Stores 152 88 240
Art Dealers 126 88 214
*No self-employment reported for this category.
As would be expected in a region distinguished by its strong concentration of independent artists, Advantage West shows very strong self-employment in the creative enterprise cluster. Of the eleven counties in the region that have higher than average concentrations, seven have more self-employed than employed people in creative cluster establishments. The region as a whole has the highest ratio of self-employment to establishment employment in the state—nearly one to one. The seven counties dominated by self-employment (Mitchell, Yancey, Polk, Jackson, Transylvania, Clay, and Watauga) all show independent artists as the primary source of creative cluster activity. In many of these places, even these strong numbers may represent a significant undercount, due to the difficulty of using secondary data to identify people in arts-based
occupations. RTS’ case study of Yancey and Mitchell counties (Appendix G) shows that the arts organizations in the area identify twice as many independent artists and performers as the secondary databases do.
The picture looks slightly different in entertainment and new media. Most of the Advantage West employment in this sub-cluster is in establishments, which would be expected due to the industries that dominate the sub-cluster here and statewide (primarily printing and manufacturing industries). The entertainment and new media sub-cluster shows much less activity here, while the design sub-cluster makes an even stronger showing than the arts. Buncombe is again the lead county in terms of employment; commercial lithographic printing accounts for nearly half of this and architectural services another quarter. The county with the highest concentration in the design sub-cluster, however, is Rutherford. Nearly all of this concentration is due to the employment in two greeting card companies.
Charlotte
Adjacent to the medium-level art and design concentrations of the counties clustered in the Hickory metro area there are strong concentrations in the Charlotte metro counties (except Gaston). These concentrations in the creative enterprise cluster are driven nearly equally by the arts and design sub-clusters. Employment in the media-centric sub-cluster is low compared to other two, but compared to other regions, the Charlotte region shows high relative
concentrations in the entertainment and new media industries.
In the arts sub-cluster, Mecklenburg leads the region, as would be expected given its vastly more concentrated metropolitan population and industry base. Commercial lithographic printing is the primary industry in Mecklenburg’s arts sub-cluster, followed closely by photographic processing and laboratories. The next largest concentration of arts is Cleveland County, most of whose creative workers work for one of two pressed and blown glass manufacturers. Iredell also shows, for its size, relatively high arts employment, more than half of which is due to two companies in art goods manufacturing.
In the design sub-cluster, Mecklenburg’s high concentration in creative design industries is concentrated primarily in architectural services (both building and landscape) and
Table 10: Top Industries in the Creative Economy of the Charlotte Region
Industry Employment in
Establishments Self-Employment Total
Printing 3,895 59 3,954
Broadcasting 3,582 * 3,582
Publishing 3,148 * 3,148
Architectural Services 2,177 270 2,447
Independent Artists, Writers, and
Performers 115 2,278 2,393
Other Pressed and Blown Glass and
Glassware Manufacturing 1,836 * 1,836
Specialized Design Services 699 916 1,615
Advertising 1,561 * 1,561
Ornamental and Architectural Metal
Work Manufacturing 1,509 * 1,509
Libraries and Archives 1,486 * 1,486
Jewelry Stores 1,143 162 1,305
Arts Promoters and Agents 747 324 1,071
Photography Services 465 434 899
Book Stores 847 45 892
*No self-employment reported for this category.
Piedmont Triad
Although industry clusters are frequently defined by economic development regions, they clearly do not always break down along political boundary lines. The creative enterprises in the Piedmont Triad region are part of a cluster that spans the Piedmont and Research
Triangle, with a line of core creative enterprises that stretch from Forsyth County and
Winston-Salem in the west to Goldsboro and Wayne County in the east, and north into the rural counties of Rockingham, Caswell, Vance and Warren on the Virginia line. At the
southern edge, Moore and Lee counties are likely to be independently strong in the core cluster, particularly given the strength of the pottery enterprises within those counties.
Table 11: Top Industries in the Creative Economy of the Piedmont Triad
Industry Employment in
Establishments EmploymentSelf- Total
Printing 4,481 55 4,536
Publishing 2,744 * 2,744
Independent Artists, Writers, and Performers 101 1,786 1,887
Broadcasting 1,784 * 1,784
Specialized Design Services 856 732 1,588
Advertising 1,229 * 1,229
Photography Services 791 369 1,160
Libraries and Archives 953 * 953
Artisanal beverages 881 * 881
Fine Arts Schools 867 * 867
Jewelry Stores 737 83 820
Other Pressed and Blown Glass and
Glassware Manufacturing 790 * 790
Book Stores 684 20 704
Florists 505 166 671
Architectural Services 410 106 516
Ornamental and Architectural Metal Work
Manufacturing 509 * 509
Vitreous China, Fine Earthenware and Other
Pottery Product Manufacturing 462 * 462
Theater and Performing Arts Companies 344 84 428
*No self-employment reported for this category.
Most of the Triad’s employment in the creative enterprises cluster is nearly evenly divided between the arts sub-cluster and design sub-cluster, with a small showing in the entertainment and new media sub-cluster. In Guilford County, printing accounts for more than forty percent of arts employment; this industry is important to Forsyth County as well. Pottery manufacturing and independent artists also play a slightly larger role in Forsyth than in Guilford. The two counties combined account for more than two-thirds of the Triad’s employment in the arts sub-cluster. Alamance County, while on a smaller scale than the two metro counties, shows some strength in printing as well as in independent artists. Davidson County, on an even smaller scale, still makes a showing in book printing, as well as a relatively large number of self-employed), most of who are independent artists or in design services.
As noted, the Triad’s employment in the entertainment sub-cluster is far lower than in the
other two sub-clusters, but a few counties do show a modest concentration. Forsyth County has both the highest employment numbers and the highest concentration. Most of this
employment is concentrated in book printing and event promoters. Guilford has a
below-average concentration, but higher employment in raw numbers than the Triad’s other counties, with employment spread fairly evenly across theater companies, music publishing, and retail.
Research Triangle Park
The geography of RTP’s creative enterprises cluster merges with that of the Piedmont Triad and, to some extent, the Southeast region, though the industry dynamics differ somewhat. As expected, metro Wake and Durham have both the highest employment numbers and among the highest concentrations of creative enterprises (Lee County has a higher concentration in entertainment, Orange and Harnett are higher in visual, and Orange and Moore are higher in design). Like other regions, most of RTP’s creative enterprise employment is in the visual and design sub-clusters, with only about seven percent of the region’s arts-based employment in the entertainment and new media sub-cluster. Wake County does show a modest strength in promoters of performing arts and other facility-based events.
Table 12: Top Industries in the Creative Economy of the Research Triangle
Industry Employment in
Establishments EmploymentSelf- Total
Publishing 9,198 * 9,198
Software Publishers 6,044 * 6,044
Printing 4,603 43 4,646
Independent Artists, Writers, and
Per-formers 130 2,777 2,907
Broadcasting 2,649 * 2,649
Libraries and Archives 1,723 * 1,723
Architectural Services 1,258 250 1,508
Specialized Design Services 594 906 1,500
Advertising 1,277 * 1,277
Jewelry Stores 975 137 1,112
Vitreous China, Fine Earthenware and
Other Pottery Product Manufacturing 951 * 951
Photography Services 507 403 910
Book Stores 767 59 826
Landscape Architectural Services 540 260 800
Florists 525 128 653
In the visual sub-cluster, Wake and Durham have above-average concentrations and the highest employment numbers, primarily driven by their strengths in printing industries, book publishing, and independent artists (Durham). Orange County has the highest concentration in the visual sub-cluster, in which the overwhelming majority consists of self-employed independent artists. Harnett has the second highest concentration, also dominated by self-employed independent artists. In the design sub-cluster, Wake County is by far the leader in both employment numbers and in concentration. More than half its design-centered employment is in one industry—software publishing. Other significant industries include architectural services, commercial lithographic printing, and advertising agencies. Durham is a far second, with most of its design employment concentrated in lithographic printing, with some showing in software publishing, architecture services, and landscape architectural services.
Northeast
Nearly all of the counties in this rural region appear to have concentrations in the creative enterprise cluster. However, two regional clusters (north and south of the Sound) are
geographically likely because of the limited access across Albemarle Sound and Chowan River and the adjacency of the Norfolk-Virginia Beach-Newport News metro area to the northeast portion of the region. Dare County has easy access to both cluster areas and thus is likely to be interdependent with both.
Table 13: Top Industries in the Creative Economy of the Northeast Region
Industry Employment in
Establishments Self-Employment Total
Libraries and Archives 343 * 343
Publishing 326 * 326
Independent Artists, Writers, and
Performers 11 279 290
Broadcasting 236 * 236
Printing 176 11 187
Jewelry Stores 123 38 161
Specialized Design Services 27 132 159
Florists 103 47 150
Cable and Other Program Distribution 134 * 134
Book Stores 94 26 120
Museums 108 * 108
Photography Services 15 87 102
The Northeast region’s creative cluster employment is shared fairly evenly between the visual and design sub-clusters, with entertainment and new media accounting for less than a quarter of the region’s total cluster employment. The industry data in the Northeast region present an ambiguous picture; the counties that account for the greatest share of creative cluster employment do not have above average or, in many cases, even near-average concentrations in the cluster. The counties that do appear highly concentrated are on such a small scale, with many showing fewer than fifty employees per sub-cluster, as to suggest that the concentration only appears due to the sparse economic activity taking place in the rest of the county; however, it is important to take note not only of where the pockets of strength are in the creative enterprise cluster, but also to show where arts is contributing to the local economy. Even on a small
scale, the relative concentration shows that the arts employment is fairly important to the rural economy.
Dare County, which has the densest population center in the region, has the greatest
number of employees in all the sub-clusters, but shows an above-average concentration only in entertainment and new media. Most of its employment in this sub-cluster is in theater companies, with some showing in independent artists and design services. Much of the rest of the
concentrations in the cluster appear to be driven mostly by retail, with a modest pocket of activity in landscape and architectural services. These strengths are likely due to the ways in which
creative enterprises and employment interact with tourism, which is Dare County’s most important economic base (see Appendix G for RTS’ case study on Dare County). Independent artists are important for producing the goods and souvenirs that tourists purchase and that decorate the hotels and rental houses in which they stay. Designers are necessary as well for the hotel and rental vacation house industries, as are landscape and architectural services. In addition, Dare County’s tourists report high levels of interest in the area’s cultural and artistic amenities. These connections are part of the explanation for our finding, reported in Section IV, that the presence of arts and designers is the single greatest explanatory factor in the level of tourist expenditures across the state.
Eastern
With mostly medium concentrations in the core creative enterprise industries, the Eastern region’s southern coast forms a clear cluster extending from the rural counties of Craven and Pamlico at its northern edge, south though metro Onslow county (Jacksonville). This may form a cross-region coastal cluster with the Southeast region’s Pender county and the metro counties New Hanover and Brunswick (Wilmington). Wayne (Goldsboro) and Greene counties also show core cluster concentrations, perhaps bolstered by proximity to suburban Raleigh.
Table 14: Top Industries in the Creative Economy of the Eastern Region
Industry Employment in
Establishments Self-Employ-ment Total
Publishing 1,252 * 1,252
Libraries and Archives 910 * 910
Independent Artists, Writers, and Performers 14 696 710
Broadcasting 686 * 686 Printing 626 15 641 Advertising 570 * 570 Jewelry Stores 472 59 531 Florists 354 86 440 Book Stores 330 31 361
Specialized Design Services 138 179 317
Cable and Other Program Distribution 303 * 303
Photography Services 124 140 264
Landscape Architectural Services 91 148 239
*No self-employment reported for this category.
The Eastern region has an arts sub-cluster concentration near the coast and into Lenoir County. A small design concentration is highlighted around Goldsboro that appears to be centered in Lenoir, the only county in the region with an above-average concentration in the design sub-cluster. Most of this employment is in printing and in earthenware/pottery production. These industries also account for Lenoir’s concentration in the arts sub-cluster. Wayne County also shows a concentration in the design sub-cluster, but its employment appears to be concentrated in retail industries. The only other county in the region that shows a significant concentration in the creative enterprise cluster is Carteret. Most of Carteret’s employment is in commercial lithographic printing, landscape design, and retail.
Southeast
The Southeast shows the least concentration in the core creative enterprise cluster of all the state’s economic development regions. The three coastal counties of the Southeast region appear to participate in a larger coastal cluster shared by the Eastern region. The
Fayetteville county of Cumberland shows concentrations in both the core and the full
cluster, and is likely to be participating in the cluster largely located in the Triangle region. The Southeast region shows little concentration in any of the sub-clusters. Only New Hanover shows any significant presence of creative enterprises, with concentrations well above average in both the visual and design sub-clusters. Most of this employment is concentrated in pressed and blown glass manufacturing and independent artists.
Table 15: Top Industries in the Creative Economy of the Southeast Region
Industry Employment in
Establishments EmploymentSelf- Total
Publishing 1,429 * 1,429
Broadcasting 1,256 * 1,256
Independent Artists, Writers, and
Performers 29 739 768
Libraries and Archives 686 686
Printing 624 15 639
Jewelry Stores 556 59 615
Book Stores 338 23 361
Specialized Design Services 211 131 342
Florists 254 83 337
Advertising 312 * 312
Architectural Services 252 38 290
Landscape Architectural Services 165 100 265
Software Publishers 264 * 264
Photography Services 144 101 245
*No self-employment reported for this category.
D. Networks and associations in the state’s creative enterprise economy
In any cluster, associational and social structures create the environment for cooperation and reciprocation that are so important to success. The associational milieu produces the “social capital” that enables people to share ideas, information, resources, and risks.Ultimately, the opportunity to connect to peers is what attracts many companies and firms to a place. That is, perhaps, even truer of those in the arts and crafts who are inspired and attracted to communities of artists. The chance to observe, learn, and share is especially strong in small creative enterprises unable alone to achieve any economies of scale.
The creative enterprise cluster is particularly well organized to promote networking and associative behavior. Smaller firms have the most to gain from networking, and North Carolina’s creative enterprise clusters are dominated by small firms, micro-enterprises, and entrepreneurs. Within the creative enterprise clusters, the large numbers of arts-related non-profits constitutes a very large part of that support infrastructure.
The enterprises and entrepreneurs that produce art are well represented by state and local arts councils. The North Carolina Arts Council listed more than 15,000 artists in December 2004—about 1.8 artists for every 1,000 residents. Nine counties claim more than four artists per 1,000 residents, with Swain County at the top with more than one artist per every 100 residents.
An informal survey of counties, however, indicates that membership in local arts councils is much higher. Even taking into account that locally reported numbers very likely include some artists from outside the county and some non-artists, the numbers are considerably higher than any of the values reported by other sources. Among the 25 counties reporting local membership, 24 had member to resident ratios higher than the state’s list—in eight counties, more than double. Filtering membership lists from the Toe River Arts Council representing Mitchell and Yancey counties to include only all county residents in the arts, yielded nearly double the number of working artists and produced ratios of 13 and 10
people earning income from the arts per resident.
Table 16: Counties with more than four artists per 1,000 residents
County NC Arts Council Artists per 1000
Swain 144 11.0 Orange 883 7.5 Clay 54 5.7 Mitchell 87 5.5 Yancey 88 4.8 Watauga 196 4.6 Jackson 141 4.0 Transylvania 119 4.0 Buncombe 865 4.0
While arts councils are leading forums for association, local networking goes well beyond the membership organizations. The many pottery guilds across North Carolina, such as the Triangle Potters Guild, offer shared resources for potters plus regular meetings that build
social connections, support networks, and informal knowledge exchange. In the Toe River Valley, 25 artists form the Toe River Crafts Cooperative, eight glass blowers in Celo have formed “Glass Studios of the South Toe River Valley” to collectively advertise, market and arrange studio tours. 14 potters in Mitchell County formed a guild to advertise and market called the “Potters of Roan Mountain.”
Places that teach or house creative enterprises also form natural milieus for learning, sharing, and collaborating. In the Toe River Valley, the Penland School of Crafts has regular events that attract artisans from around the world and provide a focal point for local artists. On a smaller scale, the EnergyXchange is an incubator that provides a community setting for multiple artists. The arts incubator in Siler City encourages artists to not only swap techniques for creating art but also to share ways in which to market their art effectively. Community colleges such as Haywood, Montgomery, and College of the Albemarle foster social capital among artists and artisans. Regularly scheduled arts and craft shows and walks are other common venues at which artisans and artists meet and interact, creating a collective
market and chance to see each other’s new products.
Graphics designers (design sub-cluster) are less apt to associate for business purposes, perhaps because they compete more directly for the same customer base. Their major
connections tend to be made through professional associations and alumni organization, some of which have local chapters in larger cities. The American Institute of Architects has seven local chapters spread across the state and the American Institute of Graphic Artists (AIGA) has a Raleigh chapter. Social capital is more professionally driven and less place based, with the exception of the firms that produce their art on the computer, whose social networks are more often around IT, not arts-specific, e.g., MAC user groups.
In the entertainment sub cluster, social capital tends to be informal but networking more
important. Due to the project-based and small firm structure of this sub-cluster, networking is very important. Companies and performers form networked business entities for specific projects, disband when complete, and reform for new projects. Success depends heavily on connections, personal relationships, and reputation. Many are represented by statewide organizations, such as the North Carolina Theatre Conference, but local chapters where members assemble and meet are rare.
III. Public and Nonprofit Sector Contribution to North Carolina’s Creative
Economy
It should be noted at this point that this study’s focus upon creative industries, and the
economic activity that results from or ripples outward from a creative activity, means that the study’s focus is on the private sector. This focus is also present partly because other studies of the arts and creativity in North Carolina have concentrated upon the public and nonprofit sectors, whereas the role of the private sector has gone relatively unexamined. It is necessary, however, also to consider the ways in which public sector investment and nonprofit sector support are key to driving the creative economic activity taking place in the private sector, and to make some accounting of them in the analysis of the scale and scope of North Carolina’s creative economy. The study therefore includes investigations into creativity-related activities in North Carolina’s public and nonprofit sectors, including education, state government, local government, and civic and social organizations. These analyses show that North Carolina is making significant public investments in its creative enterprises and that its nonprofit sector is doing a great deal to support the private sector activities that drive the creative economy.
To gain a greater understanding of these sectors, the study team examined the following metrics: • State government employment dedicated to creative economy activities,
• Higher education faculty focused on developing creative economy skills, • Occupational data on creative economy professions concentrated in
nonprofit-dominated fields,
• Public school (K-12) faculty focused on developing creative economy skills, • Local government activities in arts and the creative economy,
• Proportion of establishments in nonprofits that are promoting the arts and other elements of the creative economy.
Table 17: Overview of Public and Nonprofit Sector Creative Economy Data
Establishments Employment Wages
Postsecondary education 128 5,940 $278,887,400
K-12 education 2,290 5,231 $200,368,224
Nonprofit organizations 78 2,357 $31,680,300
State government n/a 831 $30,124,622
Local government* n/a 250 $8,254,000
Library occupations n/a 6,795 $259,570,740
Total 2,496 21,404 $808,885,286
*Using North Carolina 2005 average wage for local government employees.
As Table 17 shows, the contribution made by public and nonprofit organizations to North Caroli-na’s creative economy is considerable, and demonstrates a significant investment on the part of the state.
A. Higher Education Employment in North Carolina’s Creative Economy
This analysis makes use of data from the Bureau of Labor Statistics’ OccupationalEmployment Statistics (OES) program, which identifies several distinct postsecondary teaching occupations that relate to the creative economy. Not every element of the creative economy that may be taught is represented, but enough for a solid estimate of effort and investment statewide. Table 18 below shows employment and wage data for North Carolina’s creative economy postsecondary teaching occupations.
Table 18: Postsecondary Arts Education Instructors, North Carolina
Occupation Number of
Workers Mean Annual Salary
Architecture Teachers, Postsecondary 130 $55,900
Library Science Teachers, Postsecondary 100 $58,570
Art, Drama, and Music Teachers, Postsecondary 2,530 $47,100
Communications Teachers, Postsecondary 690 $50,470
English Language and Literature Teachers, Postsecondary 2,490 $44,890
Total 5,940 $278,887,400*
Source: BLS, Occupational Employment and Wage Estimates, May 2005
*Total equals the sum of each occupation’s mean annual salary multiplied by the number of workers in that occupation.
The selection of teaching areas for which data are given was driven partly, as described above, by the availability of OES data. These teaching areas also, however, represent
different facets of the creative economy. Art, drama, and music teachers relate to the traditional arts element (as do language and literature, though more indirectly); architecture relates to the design element; communications relates to the entertainment and new media ele-ment; and library science—possibly the most unexpected of the categories—relates to the devel-opment of creative economy supports and dissemination outlets.
As expected, the most numerous of the analyzed teaching fields are Art, Drama, and
Music and English Language and Literature. These fields are also, on average, the lowest paid among the creative economy-related teaching occupations, though the average salary range is not wide (from $44,890 to 58,570). Together, these two fields account for 85 percent of creative economy-related postsecondary teaching positions in North Carolina’s institutions of higher edu-cation.
B. State Government Employment
While there are no doubt employees in every state government agency and department whose function requires the exercise of creativity, the study team determined that there is not a reliable way to identify and count the creativity-oriented employees other than by
department. To that end, the state government creative economy employment will be repre-sented by the employment in the Department of Cultural Resources. As of September 2006, DCR had 831 permanent positions, with a wage total of $30,124,622.
C. K-12 Education
To develop an estimate of the scale of activity in the North Carolina public school system that relates to developing creative economy skills and abilities, RTS requested data from the NC Department of Public Instruction (DPI) on the number of full-time equivalent teachers in specific creative economy-related courses. While there are many courses that contain
creativity-related content, RTS selected courses in two distinct categories: traditional or “core” arts courses in music, dance, visual arts, and theatre; and courses in arts- or artisan-based technical or career-oriented areas, such as welding and applied design. The latter category is included because of their importance in developing applied creative skills and assets. The DPI supplied data on the number of full-time equivalent teachers in North Carolina teaching each of these courses (streamlining the data to remove any double-counting of individual teachers). RTS grouped the data supplied by DPI by class type and region and normalized it (that is, divided it) by the size of the school-age population. The results are presented in the tables below.
Table 19: Teaching Positions in the Arts in North Carolina’s Public Schools,
by Discipline and Region*
Region Drama,
Theater & Film
Music Visual Arts Dance
Advantage
West FTE Teachers** 37.6 257.2 179.8 12.6
FTE p/c*** 2.0 13.5 9.5 0.7 Charlotte FTE Teachers 95.2 488.8 401.7 29.1 FTE p/c 2.4 12.5 10.3 0.7 Eastern FTE Teachers 28.1 273.8 214.9 12.3 FTE p/c 1.4 13.9 10.9 0.6 Northeast FTE Teachers 13.8 101.2 95.0 2.6 FTE p/c 2.0 14.9 14.0 0.4
Piedmont Triad FTE
Teachers 54.3 446.1 342.9 34.7
FTE p/c 1.6 13.1 10.0 1.0
Research
Tri-angle FTE Teachers 103.4 487.7 386.6 61.4
FTE p/c 2.8 13.3 10.5 1.7
Southeast FTE
Teachers 51.5 340.7 263.4 25.5
FTE p/c 2.4 15.7 12.2 1.2
* Values calculated from 2004-05 data provided by the North Carolina Department of Public In-struction.
**Full-time equivalent teaching positions calculated by DPI.