Measuring Successful Arts and Culture Strategies

PREVIOUS RESEARCH 

Perhaps the most symbolic event in the ongoing identification of arts and culture as an industry occurred in 2013, when the Bureau of Economic Analysis (BEA), in partnership with the National Endowment for the Arts, began tracking and analyzing detailed data on the arts and culture industry.² This initial effort revealed that 3.2% of the nation’s GDP—over $500 billion—is generated by the arts and culture sector. 

The arts and culture industry has shown itself to be both a short- and long-term tool for promoting the economic development of cities and states.³ It attracts innovative, vibrant new businesses in fields such as publishing, advertising, music, dance, design, and architecture, and creates jobs for artists who anchor local cultural production. Arts and culture can also play a key role in urban revitalization and community renewal, as well as the development of cultural tourism opportunities. Current estimates indicate that for every $1 spent by arts and culture organizations in Rhode Island, $2.10 is generated in the spillover economy in restaurant patronage, hotel reservations, and related business.¹

DATA & METHODS 

To address our research questions, we conducted a number of interrelated qualitative research activities: 

1) We surveyed national and regional arts and culture data repositories and reviewed reports and indices created using these data. This review was designed to identify commonly used measures for tracking the arts and culture sector and evaluating its economic and social impact. 

2) In order to identify promising strategies for promoting arts and culture, we reviewed and presented ten case studies of arts organizations and programs representing a range of types of arts initiatives from across the country. Information about these initiatives was gathered from existing reports and data, direct inquiries with the organizations, and in-person and telephone interviews with organizational staff. 

3) To gather context about the arts and culture community in Rhode Island, we conducted semi-structured interviews with eleven stakeholders representing government agencies, nonprofit arts venues, funding agencies, cultural tourism organizations, and community groups. 

4) To understand the current policy context in Rhode Island, we reviewed existing state-level strategic plans that focus on developing the arts and culture economy, including plans from the Rhode Island State Council for the Arts and RhodeMap RI.

Our review of existing arts and culture indices and data collection efforts demonstrates that a significant amount of empirical and descriptive data is already available for measuring the arts and culture sector in Rhode Island. Our stakeholder interviews also revealed that measurement is a challenge for local organizations and that these organizations typically track a variety of data to evaluate their effectiveness and growth.

These findings suggest that a centralized Rhode Island Arts & Culture Index could have value not only for policymakers, but also for local organizations seeking a common set of metrics.

Promising Strategies for Promoting Arts & Culture

Our review of case studies from across the country revealed a number of strategies for promoting arts and culture and findings about how the sector can serve as a tool for broader economic development:

• Some cities and states have seen positive economic outcomes from making the arts and culture sector central to their local “brand” and efforts to attract tourists.
• Geographically clustering arts and culture activities and organizations into arts districts can help magnify engagement.
• In addition to bringing in money for specific events and businesses, arts districts can fuel broader renewal and attract investment in urban neighborhoods.
• Incentives such as dedicated, low-cost real estate for studios, residences, and arts-related businesses can help attract and retain artists and creative workers with high levels of human capital to contribute to the local economy.
• Localities rely on a wide variety of funding sources for supporting arts and culture initiatives, including private donations, corporate sponsorships, ticket revenues, and city and state grants. Some jurisdictions have found leveraging private investment to be a particularly promising strategy.

The case studies also suggest the important role arts and culture can play in economic innovation hubs. These are “locations that support an open innovation business model, foster co-location, and promote easy and constant interaction among many different industries and a wide variety of creative workers, from artists to scientists to engineers.”¹ They are characterized by the centralized presence of companies, universities, creative workers, and sources of capital in close and frequent contact. The Bay Area Arts Districts in San Francisco provides an example of the role arts and culture can play in innovation hubs.

The Potential of Arts & Culture in Rhode Island

Our interviews with local stakeholders, examination of Rhode Island-specific data, and review of the state policy context suggest that Rhode Island is uniquely positioned to capitalize on a centralized arts and culture economy, potentially centered around an innovation hub model. The state is characterized by a compact geography, a pre-existing infrastructure of institutions in close proximity to one another, a proven record of innovation, and a wealth of creative energy. While there is some fragmentation of effort, collaboration among organizations is growing and investment in the sector could have a significant impact.

DISCUSSION & IMPLICATIONS

The arts are a major economic force in the United States, attracting businesses, creating jobs, fueling community development, and promoting tourism. Rhode Island faces an important set of decisions about whether and how to invest in, nurture, and cultivate the arts and culture economy, building on existing infrastructure and resources to expand the opportunities available in the state.

A Rhode Island Arts & Culture Index could provide valuable information to guide these decisions, and to evaluate initiatives such as the recently enacted art sales tax exemption. Fortunately, our research indicates that relevant data and approaches for aggregating it already exist. The next step would be to convene the relevant local stakeholders to agree on a set of metrics to include in a Rhode Island-specific index, and then develop a plan for collecting, aggregating, and analyzing the data on an ongoing basis.