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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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Overview of the Creative Class theory and the 3 Ts

  • 1. Overview of Creative Class and the “3Ts” Kevin Stolarick, PhD Research Director
  • 2. What is the “Creative Class”? 2
  • 3. 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%
  • 4. 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
  • 5. 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
  • 6. The Rise of the Creative Class
  • 7. The Rise of the Creative Class
  • 8. 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%
  • 9. U.S. Creative Class • 30 (% of the workforce) • 40 (million people) • 50 (% of the wages) • 70 (% of the discretionary income)
  • 10. 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
  • 11. The “3Ts” of Regional Growth 11
  • 12. The “3Ts” Regional Growth Technology
  • 13. 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.”
  • 14. 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
  • 15. The “3Ts” Talent Regional Growth Technology
  • 16. 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.”
  • 17. Talent Talent Index • (Bachelors Degree and above) % Super Creative • (scientists, engineers, artists, musicians, designers) % Creative Class • (super creative + professionals)
  • 18. The “3Ts” Talent Regional Growth Tolerance Technology (Inclusiveness)
  • 19. 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.”
  • 20. 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)
  • 21. The “Fourth T” Talent Regional Growth Tolerance Technology (Inclusiveness) Territory Assets (Amenities)
  • 22. 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.”
  • 23. Territory Assets (Quality of Place) Economy/Growth • Housing • Culture • Climate • Education • Healthcare • Recreation • Dis-amenities • – Crime, Weather Transportation • – Connectedness
  • 24. The “4Ts” Talent Regional Growth Tolerance Technology (Inclusiveness) Territory Assets (Amenities)
  • 25. 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.”
  • 26. Creativity Index Technology • Tolerance (Inclusiveness) • Talent •
  • 27. The “4Ts” Talent Regional Growth and Prosperity Tolerance Technology (Inclusiveness) Territory Assets (Amenities)
  • 28. Prosperity Successful regions are not just growing … They do no just build wealth … Successful regions are PROSPEROUS 28
  • 29. 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
  • 30. 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?
  • 31. 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