Overview of the Creative Class theory and the 3 Ts

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Information about Overview of the Creative Class theory and the 3 Ts
Business & Mgmt

Published on February 5, 2009

Author: mpian

Source: slideshare.net

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An overview of the Creative Class theory and its three Ts (Talent, Technology, and Tolerance). Prepared by Kevin Stolarick of the Martin Prosperity Institute as part of TVOntario's AgendaCamp series on Ontario's changing economy.

Overview of Creative Class and the “3Ts” Kevin Stolarick, PhD Research Director

What is the “Creative Class”? 2

What is the Creative Class? What You Do (Job Occupation) vs. Where You Work (Industry) 10 Year Job Growth Estimate Working Sector 10% • • Service Sector 14% • Creative Sector 20%

Who Works in Creative Class? Creative Economy: TAPE T = Technology and R&D Innovation A = Arts and Culture P = Professional and Managerial E = Educating and Training

Why Occupations? Among all people who either work in the IT industry or work in an IT occupation (or both): –50.2% work in an IT occupation but not in the IT industry –25.7% work in the IT industry but aren't in an IT occupation –Only 24.1% work in an IT occupation in the IT industry IT Occupations IT Industry

The Rise of the Creative Class

The Rise of the Creative Class

U.S. Creative Class Economy Creative Service Working Workers (Talent) 40,379,520 59,769,270 31,949,350 % of Workforce 30.5% 45.1% 24.1% % of Wages 48.8% 30.4% 20.6%

U.S. Creative Class • 30 (% of the workforce) • 40 (million people) • 50 (% of the wages) • 70 (% of the discretionary income)

Canada & Ontario’s Creative Economy Creative Service Working Workers (Talent) 4,874,885 5,788,767 3,333,726 Canada 35.5% 38.7% 23.0% % of Workforce Workers (Talent) 2,027,152 2,210,604 1,311,995 Ontario 33.2% 39.4% 22.7% % of Workforce

The “3Ts” of Regional Growth 11

The “3Ts” Regional Growth Technology

Technology “A high technology base is both a necessary condition for and a result of a region having a strong creative economy. Being known as a quot;high-techquot; region helps to attract the creative workforce, which, in turn, generates new technologies making the region even more high-tech.”

Technology High Technology: • –Concentration of high-tech companies –Growth of high-tech companies Innovation: • –# of patented innovations per 1,000 people –Growth in patented innovations

The “3Ts” Talent Regional Growth Technology

Talent “The concentration of people in the Creative and Super Creative Classes, has a stronger relationship with economic growth. Creative people don't just cluster where the jobs are. They cluster in places that are centers of creativity and also where they like to live. Places need a people climate -- or a creativity climate -- as well as a business climate.”

Talent Talent Index • (Bachelors Degree and above) % Super Creative • (scientists, engineers, artists, musicians, designers) % Creative Class • (super creative + professionals)

The “3Ts” Talent Regional Growth Tolerance Technology (Inclusiveness)

Tolerance / Inclusiveness “Diversity has become a politically charged buzzword. To some it is an ideal and rallying cry, to others a Trojan-horse concept that has brought us affirmative action and other liberal abominations. Creative Class people use the word often, but not to press any political hot buttons. Diversity is simply something they value in all its manifestations.”

Tolerance / Inclusiveness Melting Pot Index • (% foreign born) Gay/Lesbian Index • (% gay & lesbian population) Boho Index • (% culturally creative) % Nonwhite & Non-black • % Interracial Marriage • Composite Diversity • Index (CDI)

The “Fourth T” Talent Regional Growth Tolerance Technology (Inclusiveness) Territory Assets (Amenities)

Territory Assets “What Creative people look for in communities are abundant high- quality amenities and experiences, an openness to diversity of all kinds, and above all else the opportunity to validate their identities as creative people. Places are valued for authenticity and uniqueness … Authenticity comes from several aspects of a community … It comes from the mix … Authenticity is the opposite of generic.”

Territory Assets (Quality of Place) Economy/Growth • Housing • Culture • Climate • Education • Healthcare • Recreation • Dis-amenities • – Crime, Weather Transportation • – Connectedness

The “4Ts” Talent Regional Growth Tolerance Technology (Inclusiveness) Territory Assets (Amenities)

Creativity Index “The key to understanding the new economic geography of creativity and its effects on economic outcomes lies in the 3T's of economic development: Technology, Talent, and Tolerance. Each is a necessary but by itself an insufficient condition: To attract creative people, generate innovation and stimulate economic growth, a place must have all three.”

Creativity Index Technology • Tolerance (Inclusiveness) • Talent •

The “4Ts” Talent Regional Growth and Prosperity Tolerance Technology (Inclusiveness) Territory Assets (Amenities)

Prosperity Successful regions are not just growing … They do no just build wealth … Successful regions are PROSPEROUS 28

Defining “Prosperity” Prosperity The condition of being prosperous, successful, or thriving; good fortune, success, well-being, wealth. Prosperous Having continued success or good fortune; consistently successful, esp. economically; flourishing, thriving. Oxford English Dictionary

Dimensions of Prosperity Growth Environment/Green • • • Wealth/Money • Participation / Social Capital • Welfare • Achieving Potential – Education • Happiness/Satisfaction – Healthcare • Magnetism – Wellness/Health • Competitiveness Productivity • • City Size • Taxes • ∆’s (changes over time) • Social Contract • Cultural/Arts Measures • Equality/Affordability • Sustainability • Inclusiveness • Others?

For More Information • Richard Florida’s books – “The Rise of the Creative Class” – “The Flight of the Creative Class” – “Who’s Your City?” • martinprosperity.org • creativeclass.com 31

Thank You Kevin Stolarick kms@rotman.utoronto.ca

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