Creative Class And Local Economic Development Commerce Essay

This essay will see the public-policy theory of the ‘Creative Class ‘ and whether this does in fact provide a solution for Local Economic Development. The thought of the originative category was foremost introduced in Richard Florida ‘s ‘The Rise of the Creative Class: And how it ‘s Transforming Work, Leisure, Community and Everyday Life ‘ ( 2002a ) , which became a best marketer in its field. Subsequently the theory of the originative category has cemented itself into popular public-policy.

The construct of the originative category is based upon a new attack to Local Economic Development ( LED ) . Alternatively of the more traditional attack to LED, of local and regional bureaus seeking to better their economic system through the attractive force of Trans National Corporation ( TNC ) through subsides and other inducements ( Pike et al. 2006 ) , the theoretical account of the originative category is routed in the thought of the fight of an country and its ability to pull people to their vicinity over others. The construct of the fight of an country is one that has grown well in the last century ( Bristow 2005 ) to the point where it is considered that fight peers prosperity and parts should concentrate on seeking to pull exogenic resources.

The ‘Creative Class ‘ is an illustration of an exogenic resource, which focuses on the attractive force of specific persons and types of business, instead than companies ( Pike et al. 2006 ) . In this respect originative category refers to a peculiar pool of persons working in specific sectors, which are thought to hold a good impact upon the environing environment around where they work. This essay will seek to specify what is meant by the originative category and see the pros and cons in this kind of theoretical account for presenting local economic development. Of class to merely look into the theory of this argument is deficient because what may work in theory does non ever work in pattern. Therefore it is of import to size up an illustration where these theories have been put into consequence, one such instance is that of Cardiff.

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Before sing Cardiff as a instance survey it is first of import to specify what is meant by the term the ‘Creative Class ‘ . There has been a batch of literature based on this new economic group, although with most academic theories the more it is defined the more equivocal it becomes. In sing who precisely the term the originative categories refers to, it makes sense to get down with the key text which foremost introduced the thought into mainstream public policy.

In Florida ‘s ‘Rise of the Creative Class ‘ ( 2002a ) he states that the term refers to a specific set of people in society who are engaged in work which ‘create meaningful new signifiers ‘ ( Florida 2002a, pg 68 ) , specifically people who add economic value to an country through their creativeness. This is non the first theory which has centred around a specific group in society, but the difference between the construct of the originative category and old constructs associating together common societal and professional groups such as “ Knowledge Workers ” and “ professional-managerial category ” , is that the footing of the originative category is routed in the economic instead than societal or cultural ( Florida 2002a ) . However, this foundation in the economic underpins and informs it members ‘ societal, cultural and lifestyle picks ( Florida 2002a ) . In other words, people working in originative occupations tend to socialize with people in likewise originative professions merely because of their comparable economic map within the societal and cultural penchants stemming from this group, instead than being the footing of the societal grouping ( Florida 2002a ) .

In a diary written by Florida called the ‘The Economic Geography of Talent ‘ he states that those belonging to the originative category, or ‘talented people ‘ as they can besides be referred to, can be identified based upon three steps of endowment. These are: the extremely educated ; those who are professional and proficient workers ; those who are scientists or applied scientists ( Florida 2002b ) . This definition of gifted persons can so be two cardinal sets of originative professions known as the ‘Super-Creative Core ‘ and ‘Creative Professional ‘ ( Florida 2002a, pg. 69 ) . The first of these constituents, the ‘Super-Creative Core ‘ , consist of scientists, applied scientists, university professors, interior decorators and designers, which are professions where the single produces new merchandises or designs through their work which are so widely movable ( Florida 2002a ) . The 2nd constituent, the ‘Creative Professional ‘ applies to those working in knowledge intensive industries such as attorneies, physicians, fiscal advisors and those working in the hi-tech sectors instead than bring forthing creativeness like those in the ‘Super-Creative Core ‘ these persons occupations focus on originative job resolution ( Florida 2002a ) .

Having considered the kind of professions that the originative category incorporates it is of import to see the features of this group and how they are likely to hold a profound consequence on the LED, other than merely through their economic map. Pike ( 2006 ) considers that the originative category are those with ‘a relaxed frock codification, flexible working agreements, and leisure activities that focus on exercising and utmost athleticss ‘ ( Pike 2006 p193 ) every bit good as working within originative sectors. In depicting the lifestyle wonts of the originative category Florida ( 2002a ) considers the street flat civilization that these persons enjoy and describes an environment “ pullulating blend of coffeehouse, pavement instrumentalists, and little galleries and bistros, where it is difficult to pull the line between participant and perceiver, or between creativeness and its Godheads ” ( Florida 2002a, pg. 166 ) . Similarly to the characteristic raised by Pike ( 2006 ) , Florida ( 2002a ) considers that the originative categories actively participate in a assortment of experiential activities such as traveling, shopping and exercise. In decision the originative category is a sector that seeks to actively take part instead than taking to be witnesss ( Florid 2002a ) .

However, these points are non unchallenged and a figure of published academic texts have criticised the thoughts put frontward by Florida. Markussen ‘s journal article “ Urban Development and the Politicss of the Creative Class ” ( 2006 ) makes the instance that in fact most of those identified by Florida as being originative professions are non inherently originative and they have no construct of group individuality as a whole. This point is likewise made by Montgomery ( 2005 ) who states that Florida has devised a construct which merely covers the “ more cardinal truths about originative surroundings or dynamic metropoliss ” ( Montgomery 2005, pg. 339 ) instead than placing a cardinal economic group of persons. In this respect, these faculty members ‘ position of this originative category merely refers to a aggregation of persons who are present in every major economic vicinity, and the construct of street flat civilization is more a mark of the general alterations in gustatory sensation of the populace and non due to the desires of one specific group of people.

Why pull the ‘Creative Class ‘ ?

Although the term ‘Creative Class ‘ defines a group of persons characterized by an of import accomplishments sets and cognition, how does this hold an consequence on Local Economic Development? In add-on, why should metropoliss and parts seek to actively pull these persons to their vicinity?

The attractive force and keeping of a originative work force is seen as a important driver of economic growing in local and regional countries ( Peck 2005 ) and has replaced more traditional theoretical accounts of pulling hi-tech companies. Florida ( 2002b ) states this displacement of focal point from the attractive force of concern to the attractive force of labor is due to the fact that ‘the handiness of endowment is an progressively of import location factor for high engineering houses ‘ ( 2002b p25 ) . In other words the accent on the importance of inducements in pulling houses to a vicinity has become less important than the ability of houses to turn up in countries with a high quality labour market.

Florida ( 2002a ) besides makes mention to how the originative category can be a accelerator for LED in his analogy the ‘3T ‘s of Economic Development ‘ , the ‘T ‘s ‘ mentioning to Technology, Talent and Tolerance. The footing of this analogy is that growing is driven by originative people ( Talent ) who locate to topographic points that are ethnically diverse and unfastened to new thoughts ( Tolerant ) and this concentrations of ‘Cultural Capital ‘ along with the debut of new merchandises and procedures ( Technology ) leads to concern formation, occupation coevals and economic growing ( Montgomery 2005, pg. 339 ) .

This technique of pulling economic growing is besides more good to the country itself, as the attractive force of companies through inducements can merely supply a short-run solution because if the needed local labor force is non present so the company is improbable to stay in the country for the long term. Besides in the current economic clime there is small chance for parts to pull big corporations through inducements ; hence, it is indispensable that local countries achieve a degree of uniqueness and entrepreneurialism that will let increased fight and economic growing, which can be achieved through the creative activity of a originative labor force in the country ( Florida 2002a ) .

Some literature suggests that non merely do the creative categories have an consequence upon the economic system of the country but they can besides supply other benefits which can better an country. In ‘The “ Creative Class ” and the Gentrifying City ‘ , Howell discusses how the originative category can better their physical environment by the procedure of redevelopment and gentrification. In fact he states “ What holds ”bohemians ” and ”creativeA professionals ” together is notA classA at all, but their engagement in the procedure ofA gentrification. ” ( Howell 2005, pg. 39 )

However, likewise to the overall construct of the Creative Class non everyone portions this position. Using the indices that Florida suggests for estimating the impact the originative categories have on economic growing Hoyman and Faricy ( 2009 ) found in their analysis that there was no statistical grounds that metropoliss with higher proportions of originative category workers correlated with any type of economic growing from 1990-2004. In fact Malanga ( 2004 ) found that in the United States the best performing artists in footings of Local Economic Development were non originative metropoliss but were in fact those that offered concern friendly environments with low-taxes and economic inducements.

How make you pull the Creative Class?

Despite the assorted unfavorable judgments raised against the construct of the originative category and their ability to excite economic growing, it is clear that overall benefits of originative labors have a important weight. Having come to the decision that the attractive force of a gifted work force can supply economic benefits to an country the following challenge that local and regional bureaus face is what factors attract these gifted persons and how to make a so called ‘Creative City ‘ ( Hall 2000 ) . With this in head, it is necessary to place the cardinal constituents that make originative metropoliss and highlight the issues faced by local bureaus who try to underscore and develop these aspects.

Florida ( 2002c ) suggests that there is a strong nexus between the originative categories and Bohemian environments. He states that ; ‘the presence and concentration of Gypsies in an country creates an environment or surroundings that attracts other types of talented or high human capital persons ‘ ( Florida 2002c, pg. 55 ) . The concluding behind this attractive force to such Bohemian environments is as a consequence of the characteristics that these environments provide, which he lists as ‘active diversion, high quality eating houses, hustling street life, and music locales ‘ ( Florida, 2002b p16 ) . In other words Florida believes, and this is backed up by other faculty members as good, that there is a strong correlativity between the concentration of lifestyle comfortss and the concentration of originative capital ( Florida, 2002b p18 ) . This is peculiarly relevant to the originative category as they are considered to be much more economically nomadic than other groups and are hence free to exert pick in where they locate.

In ‘The geographics of Bohemia ‘ Florida suggests a set of indices from which empirical informations can be used to cipher how Bohemian an country is, a ‘Boho Index ‘ ( Florida 2002c, pg. 59 ) . These indices help to supply a farther penetration into the type of environment that attracts originative capital. Some of the key indexs which feed into the boho index are as follows: the imperturbability index which is based upon the per centum of population ages 22-29 ; night life and civilization ( Florida 2002b, pg.746 ) ; the diverseness index besides known as the homosexual index based on nose count informations ; and the ‘Melting pot ‘ index which is based on the per centum of the population that is foreign born ( Florida 2002c, pg. 60 ) . The ground for the inclusion of indexs such as the homosexual and ‘melting pot ‘ index is that these sections of the population have long faced favoritism and banishment, therefore the presence of a big population of such cabals is a signal index of a part that is really unfastened to diverseness ( Florida 2002b, pg.747 ) .

With these indexs in head, it is clear that local and regional bureaus face a challenge in transforming vicinities into topographic points that are considered ‘cool ‘ . By utilizing Cardiff as an illustration it is possible to see how a vicinity can seek to advance itself and make a more competitory and ‘cool ‘ image, the issues this creates and gage whether the originative category truly make supply a solution to Local Economic Development.

Cardiff and the Creative Class

Cardiff City Council ( CCC ) has produced an economic scheme through which it seeks to excite Local Economic Development. The name of the papers in inquiry is Competitive Capital the Cardiff Economic Strategy 2007-2012 ( CCTCES ) . The cardinal vision that this papers identifies is:

“ To guarantee that Cardiff, as an International Capital, is an inclusive, vivacious and booming metropolis in which to populate and work, with a skilled, originative work force and a floaty concern environment ” ( CCC 2007, pg.0 )

From the beginning it is made clear that Cardiff seeks to pull a skilled and originative work force, in other words the originative category. With a strong focal point upon accomplishments and knowledge the accent of CCTCES is upon pulling the development of specific cardinal employment sectors. The sectors the Council suggest they might seek to pull are: Financial and Business Services ; Bioscience ; Creative industries ; Technology and Leisure ; Tourism. These are all sectors that characteristic conspicuously in Florida ‘s theories of originative labor and attractive force of houses ( Florida 2002a, 2002b, 2002c ) .

Equally good as seeking to pull concerns which have strong links with the originative category, Cardiff besides benefits from certain standards which Florida identifies as indexs of originative metropoliss. First in relation to the diverseness index, the CCTCES ( 2007 ) states that Cardiff has a really diverse population and that this diverseness is considered to be a ‘powerful tool for economic and societal prosperity ‘ ( CCC 2007, pg. 10 ) . This shows that Cardiff as a metropolis is unfastened to assorted sectors of society which Florida identified as an of import index of a originative metropolis ( Florida 2002c ) . However, although the scheme states that this is the instance, it so provides small information on how it intends to capitalize on this in order to promote LED. This is of import because Florida ( 2002c ) suggests that if these features are decently promoted it can take to attractive force of high capital persons, who would in turn attract houses to turn up within the metropolis.

The 2nd index of Cardiff ‘s desire to go a originative metropolis is that of the proviso of comfortss. The scheme seeks to advance the development of new comfortss within the metropolis and depict how the streets, waterfront spectacle and booming commercial activity can be considered to lend to a ‘high quality of infinite ‘ which may be considered ‘hip ‘ or ‘cool ‘ ( Florida 2002b ) . Equally good as admiting the bing infinites, topographic points and ‘spectacles ‘ which Cardiff already offers, the strategic program besides identifies marks for future development. These include such strategies and attacks as the development of a scope of originative industry hubs ; care and betterment of the metropolis ‘s cultural, leisure and sporting installations ; assortment of regeneration enterprises focused upon bettering quality of life ( CCC 2007 ) .

Equally good as these two indexs which the CCTCES makes mention to, Cardiff would look to score good on the imperturbability index. This is due to the big pupil population in the metropolis ( per centum of population ages 22-29 ) which makes up a big proportion of the population. In add-on, Cardiff has a big figure of bars, cabarets and the similar, per capita every bit good as a figure of art galleries and museums ( Florida 2002b ) . These factors all contribute to the imperturbability index which Florida suggests is likely to pull high capital persons to the country, who would in turn attract houses to turn up within the metropolis ( Florida 2002c ) . Cardiff University besides plays another of import portion in the scheme, which includes a subdivision dedicated to ‘a skilled metropolis ‘ , where there is a strong accent upon the function of Cardiff ‘s universities:

“ Cardiff must capitalize on the expertness of its universities ‘ through strong relationships between academe and concern sectors and a keeping of alumnuss ” ( CCC 2007, pg. 44 ) .

As these features suggest, Cardiff already has some of the cardinal characteristics identified by Florida as temptations to the originative category such as diverseness, agreeableness and imperturbability ( Florida 2002b, 2002c ) and the economic scheme suggests how to foster develop these features. However, this essay besides seeks to measure whether the originative category provide a solution to local economic development therefore it is of import to see whether these features have boosted the local accomplishments base and the economic system.

As portion of the Implementation of the Competitive Capital, Cardiff Council produce a reappraisal of the Economic Strategy yearly, which provides an overview of the activities undertaken over the twelvemonth that have helped come on Cardiff ‘s economic system. The Annual Review besides provides analysis of the steps of success identified in the Economic Strategy. The Economic Strategy Annual Review 2008-2009 ( 2008 ) provides a sum-up of the betterments to the accomplishments base and economic system in Cardiff. As portion of the Innovations sector of the Competitive Capital scheme it set out a cardinal purpose to increase the figure employed in high value added, cognition based, sectors ( CCC 2007 ) . In the Annual Review ( 2008 ) it provides a dislocation of how employment Numberss for each of these cardinal sectors has changed. The figures are as follows:

“ In life science 1,600 net extra occupations were created over this period, in the finance and concern services there were an extra 5,500 cyberspace occupations, whilst around 300 net extra occupations were to be found within the leisure and touristry sector. Employment degrees fell over this period in the originative industries and ICT sectors. ” ( CCC 2008, pg.22 )

In add-on, the Annual Review ( 2008 ) besides states that the UK Cities Monitor 2008 named Cardiff as one of the top 10 metropoliss in the UK to turn up a concern, based upon the metropolis ‘s success as an attractive concern finish.


The purpose of this essay was to see whether the construct of the ‘Creative Class ‘ provides a solution for Local Economic development. Florida ( 2002a, 2002b, 2002c ) considers the originative category to be the key to pulling high tech industries. Although this position is non consentaneous, holding studied the assorted statements for and against it would look that this thought of originative labor is important and has some impact upon the hereafter of economic prosperity for local and regional bureaus. Having identified the originative category, it was so of import to see what attracted them to an country. Florida stated that there was a cardinal nexus between the originative persons and Bohemian environments, where there are high grades of diverseness and specific comfortss ( Florida 2002c ) . Therefore if local and regional bureaus wished to attractive a originative work force in order to lure companies they would hold to see turn toing these features.

Having considered the theory behind pulling the originative categories it was of import to see if this would really work in pattern in order to measure whether it is in fact a feasible solution for the stimulation of economic growing. The instance survey used to find this was CCC ‘s Competitive Capital the Cardiff Economic Strategy 2007-2012 ( CCC 2007 ) , which made evident that they had sought to include and better upon a figure of the features which Florida considered cardinal factors in pulling the originative category. The Economic Strategy Annual Review ( CCC 2007 ) assessed whether these had been effectual or non in footings of growing in originative industry sectors. The study concluded that there had been some growing in certain sectors but non in others. However, this was over a period of economic uncertainness where the overall employment figures for Cardiff rose significantly ( CCC 2008 ) .

This instance survey has shown that the attractive force of originative labor can be successful in some facets, although it is hard to accomplish entirely through the execution of policy steps because it can be difficult to place precisely what attracts certain people. However, it would look that the thought of pulling concern by supplying a knowing and extremely skilled work force does supply some economic benefits, but it can non be seen as the exclusive attack and would likely turn out more effectual if integrated with other Local Economic Strategies.