Intro Creative Economy

“ Introduction to the Creative Economy” Tom Tresser

What Drives the Creative Economy? SHIFT IN WHAT AND HOW WE MAKE. HOW WE MAKE “VALUE.”

Features of the Creative Economy

Shift in economic production

The fundamental way we create value has changed and evolved over time.

From making “stuff” to making “concepts.”

What’s so special about Starbucks?

How much value does Starbucks add? Cost of coffee bean when harvested = $0.50/lb. Value realized by Starbucks from selling cup of coffee = $230/lb. AN INCREASE OF VALUE OF +46,000%.

The progression of economic value COMPETITIVE POSITION Differentiated Undifferentiated PRICING Premium Market Pine & Gilmore, “Welcome to the Experience Economy,” HBR, July/Aug 1998. Extract commodities Make goods Deliver services Stage experiences

The progression of economic value COMPETITIVE POSITION Differentiated Undifferentiated PRICING Premium Market Pine & Gilmore, “Welcome to the Experience Economy,” HBR, July/Aug 1998. Extract commodities Make goods Deliver services Stage experiences FROM THE PHYSICAL TO… TO THE CONCEPTUAL

So, do we pay MORE for… or

Creativity Drives U.S. Social + Economic Progress Jane Addams Jonas Salk

The new Creative Economy produces whole new industries…

Value of U.S. Copyright Industries 2005 That’s $1.4 trillion….

The new Creative Economy produces whole new industries… Which creates new sets of jobs and required job skills

Size of U.S. Creative Economy Workforce Source: Catalytix Consulting

What % of Illinois Workers Toil in the Creative Industries? 30%

LET’S LOOK AT THE ARTIST IN AMERICA

The arts as part of a larger set of related creative industries

How many, who is an artist, how are they doing?

Who participates in the arts in America?

The arts as part of a larger set of related creative industries – the Creative Economy.

2. How many, who is an artist, how are they doing?

Source: “NEA Artists in the Workforce: 1990-2005”

Source: http://www.acinet.org

Total Enrollment Fall 2005: total = 2,588 ( Fall 2007: 2,935 ) Enrollment by Division Undergraduate: 2,008 Graduate: 580 Enrollment by Racial/Ethnic Category International Students: 17.3% Black, non-Hispanic: 3.1% [6% of all U.S. artists are Black*] American Indian/Alaska Native: 0.9% Asian or Pacific Islander: 9% Hispanic: 6.8% White, non-Hispanic: 59.6% Unknown: 3.3% Enrollment by Gender Female: 66% Male: 34% http://www.saic.edu/about/glance/index.html#enrollment *2007 Statistical Abstract of the United States, U.S. Census Tuition rates 2008-2009: - Undergraduate students: $1,085 per credit hour - Graduate: $1,180

3. Who participates in the arts in America?

Attendance Of U.S. Arts & Culture 2002

U.S. Personal Expenses for Recreation 2004