Cultural Return: Toward a Preliminary Framework (Javier J. Hernandez Acosta)
CULTURAL RETURN:TOWARD A PRELIMINARYFRAMEWORKJavier J. Hernández Acosta, MBAInternational Conference on Cultural EconomicsKyoto, Japan June 21-24, 2012
INTRODUCTION There is a need to understand the impact of arts andculture at the micro level. There is a need of a better balance between economicand cultural indicators. It is important to “describe, understand and establish”, notonly to measure. “Cultural return” could be a parallel analysis to “financialreturn”.
RESEARCH OBJECTIVESTo develop a preliminary framework for the conceptof “cultural return” as an analysis that describes theeffects of cultural organizations into the culturalsector. The concept is expressed as the netbenefits of cultural organizations that are notincluded in the financial statements.
METHODOLOGY Literature review on social analysis forbusinesses, performance of culturalorganizations and spillovers in the cultural andcreative industries. Development of an analysis model based onthe experiences of three cultural organizations inPuerto Rico. Surveys and interviews with employees,collaborators and customers of these threeorganizations regarding the positive effects ofthe organizations (47 questionnaires).
LITERATURE REVIEW Cultural Value – (Throsby, 2001, Holden, 2004, King,2003, Klamer, 2002) Accountability and Social Analysis – (May, 2011, Shedler,1999, Gallego, 1999) Performance evaluation in cultural organizations –(Peacock, 2003, FEMP, 2009, AECD, 2009, López, 2002,Porter, 1990, Chiaravalloti &Piber, 2011, Sawhill &Williamson, 2001) Externalities (spillovers) – (DCMS, 2007, Benegas, 1998,Throsby, 2001, Hagoort, 2003)
Effect Impact DescriptionEntrepreneurialEffectSupplyEffects of cultural organizations on the development of other cultural projects. The effect isexpressed in terms of projects developed by members, collaborators, sponsors or competitors.This includes developing job skills and experience, and interaction with other industries.Policy Effect SupplyEffect of a cultural organization on issues traditionally associated with cultural policy, suchas subsidies and access to the arts. This net benefit does not result from the main culturalactivity but from management practices that allows an efficient allocation of resources.Diversity EffectSupply,DemandEffect of cultural organizations on the content and context of artistic activity. It can beexpressed in terms of aesthetical, historical and artistic terms, and as cross-generational,folkloric and traditional expressions and openness to innovation. Similarly, diversity arises asa demand effect when audiences have access to a diverse offer or through a diverse audiencecomposition.Cultural Clusteringand Cultural LifeSupply,DemandPhenomenon by which a project influences the development of cultural spaces and a climateof “cultural life”. It describes the agglomeration of cultural activity and its relation to theparticipation of citizens.Participation Effect DemandThis effect describes the impact of cultural organizations in promoting citizens’ participationin the arts. It refers mainly to the extent that promotes access for segments of the populationthat traditionally do not attend for different reasons. Overall, it describes the scope anddiversity in the audience’s composition.Educational Effect DemandDirect impact of the project in terms of educational activities related to the arts. This type ofevents, despite not being the main activity of the company, has direct effects on participationand enjoyment of the arts.CULTURAL RETURN ANALYSIS MODEL (SUMMARYTABLE)
EffectPolicy approach(FEMP, 2009)Competitiveness(Porter, 1990)Value Chain(López, 2003)Cultural Track(Hagoort, 2003)EntrepreneurialEffectSocial, economic andterritorial developmentInnovation and MemoirFirm Strategy, Structureand “Cooperation”Related and SupportingIndustriesCreationProductionDistributionCultural innovation,Artistic Leadership,Artistic and creativeprocessesPolicy EffectAccess,ParticipationLocal CultureFactor conditionsCreationProductionConservationHistoric analysis,Cultural credit,Diversity EffectInnovation and MemoirAccessParticipationLocal CultureFirm Strategy, Structureand “Cooperation”Demand conditionsCreationProductionConsumptionMulticultural contextCultural innovation,Artistic and creativeprocessesCultural Clustering /Cultural LifeSocial, economic andterritorial developmentInnovation and Memoir LocalCultureRelated and SupportingIndustriesFactor conditionsCreationProductionDistributionConsumptionCultural Innovation,Common Interest, Artisticand creative processParticipation Effect Participation Demand conditions Consumption Common InterestEducational EffectAccessParticipationFactor conditionsDemand conditionsTrainingConsumptionCommon InterestCULTURAL RETURN – LINKS WITH THEORETICALAPPROACHES
CULTURAL ORGANIZATIONS – CASE STUDY Taller Cé – Cultural cooperative that operate from 2001to 20010. Members were singer-songwriters who investand receive dividends according to their work. Operateda Theater that produced over 1,000 events fromindependent artists. The Cooperative produced sevencompilations. Teatro Breve – A theater company that produces a newcomedy event two times a week. The company employsaprox. 8 actors and a production crew of 10 people. Cambio en Clave – A project that offer Salsa dancelessons to general population. It has impact over 10,000people, coordinate Salsa events, a promoteperformances with local artists.
ANALYSIS – TALLER CÉ (SUPPLY)Summary Table 3. Taller Cé “Cultural Return” Analysis – Supply SideSupply Effect Impact IndicatorsPolicy EffectTransferring of labor subsidies toartists through the reduction ofproduction costs.1. Analysis of production costs for artistsand theater policies.2. Admission rights income generated byartists.Entrepreneurial EffectFacilitating the creation of culturalprojects through their services.1. Musical recordings and performances.2. Arts projects developed during theperiod.3. Other venues opened during the period.Cultural Clustering /Cultural LifeContribution in the revitalization ofRío Piedras and its “cultural life”.1. Business developed in the area after theCooperative.2. Collaborative events produced.3. Interdisciplinary cultural eventsproduced.Diversity Effect (Supply)Openness to diversity in the culturaloffering through exhibition andperformance policies.1. Qualitative events analysis by genre,sector, etc.2. Qualitative analysis of special events.3. Analysis of events with internationalartists.
ANALYSIS – TALLER CÉ (DEMAND)Summary Table 4. Taller Cé “Cultural Return” Analysis – Demand SideDemand Effect Impact IndicatorsDiversity Effect(Demand)Audience segmentation,strengthen niche markets anddeveloping new segments.1. Analysis of the cultural offering.2. Artists and producers opinion onevents and audiences.3. Demographic profile of theaudience.EducationalEffectImpact on youth segmentsthrough music lessons.Professional education toartists through workshops onmanagement andperformance.1. Attendance data of students andworkshops2. Analysis of educational eventsproduced by other entities.ParticipationEffectAccess and activeparticipation for differentaudience segments in thecultural activity.1. Analysis of audiences’ opinion2. Analysis of the artistic offer.
CONCLUSIONS Performance analysis model should be able to adapt to therealities and differences between sectors and activities. Governments should develop models to balance the analysisbetween economic and cultural value. Artists-entrepreneurs and cultural organizations should usemodels to understand the net benefits of their culturalactivity. It is easier for organizations to understand their impact onthe cultural sector with cultural indicators. “Cultural Return” should be an integral part of strategicplanning in cultural organizations.