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Gays important to a city's economy? Philly not in top ten. Hmm.

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Creative Cities and Their New Elite

June 1, 2002
By EMILY EAKIN 




 

Should Pittsburgh recruit gay people to jump-start its
economy? Should Buffalo - another fiscally flat-lining city
- give tax breaks to bohemians? As policy prescriptions go,
these sound absurd. But according to a new theory devised
by Richard Florida, a professor of regional economic
development at Carnegie Mellon University, towns that have
lots of gays and bohemians (by which he means authors,
painters, musicians and other "artistically creative
people") are likely to thrive. 

To understand why gays and bohemians are linked to
prosperity, Mr. Florida explains, you must first understand
something else: the role of an emerging economic force that
he dubs the "creative class" and that civic leaders in
dozens of communities regularly fork over $10,000 to hear
him discuss. 

Comprising doctors, lawyers, scientists, engineers,
entrepreneurs and computer programmers - almost everyone,
in short, who is paid to think for a living - the creative
class now accounts for nearly 30 percent of the workforce,
Mr. Florida writes in his new book, "The Rise of the
Creative Class: And How It's Transforming Work, Leisure,
Community and Everyday Life" (Basic Books). That's double
what it was 20 years ago and 10 times what it was at the
turn of the last century. Already the dominant economic
group, he argues, the creative class is likely only to grow
as what it produces - ideas, information and technology -
becomes an ever larger part of the national economy.
"Creativity has come to be valued," Mr. Florida writes,
"because new technologies, new industries, new wealth and
all other good economic things flow from it." 

Mr. Florida, 44, is hardly the first person to stress the
importance of this new group of creative types. The
sociologist Daniel Bell predicted its rise 30 years ago,
and social scientists have been writing about it ever since
under labels ranging from "knowledge" and "information"
workers to "symbolic analysts." Two years ago, the
journalist David Brooks documented the creative class's
bloated bank accounts and weakness for Starbucks and
S.U.V.'s in his witty best seller, "Bobos in Paradise"
(Bobos being affectionate shorthand for "bourgeois
bohemians"). 

In short, as Paul Romer, a professor of economics at
Stanford University put it, there is growing recognition
that when it comes to economic growth, "the relatively well
educated and relatively creative are disproportionately
important." 

Where Mr. Florida adds a new twist, however, is to argue
that while the creative class is unquestionably a blessing
to the economy as a whole, at the regional level the
picture is hardly so rosy. Heralding a "pattern of
geographic and class segmentation far worse than any we've
ever had," he says, the creative class may mean boom times
for one city and obsolescence for another. The reason, he
contends, is that this tattooed and espresso-sipping set is
unusually finicky. According to conventional economic
theory, workers settle in those cities that offer them the
highest-paying jobs in their fields. But creative-class
workers, Mr. Florida says, are more particular: they choose
cities for their tolerant environments and diverse
populations as well as good jobs. 

This is where gays and bohemians come in. Towns that have
lots of them, Mr. Florida argues, are more likely to have
creative-class workers, high-tech industry and, as a
result, strong economic growth. Not because there are
disproportionate numbers of gays and bohemians in high-tech
jobs, he explains, but because their presence signals an
open-minded and varied community of the sort that appeals
to software engineers and entrepreneurs. (Race, he says,
turns out to be less useful as a marker of tolerance
because cities with great racial diversity overall are
often highly segregated.) 

This, in essence, is Mr. Florida's "creative capital
theory." As he put it during a recent interview in
Manhattan, "You cannot get a technologically innovative
place unless it's open to weirdness, eccentricity and
difference." 

To make his case, Mr. Florida draws on data from the United
States Census Bureau and the Bureau of Labor Statistics as
well as a dizzying array of evocatively titled lists. His
book includes a creative class index (ranking cities by the
percentage of creative workers in their labor force); a
high-tech index (ranking cities by the size of their
software, electronics and engineering sectors); an
innovation index (ranking cities by the number of patents
per capita); a talent index (ranking cities by the
percentage of college-educated people in their
populations); a gay index (ranking cities by the
concentration of gay couples in the population) and a
bohemian index (a similar ranking of "artistically creative
people"). Like Olympic decathletes, some cities tend to
perform well by nearly every measure.Mr. Florida says the
"most successful places" are the ones that combine all
"three T's" - tolerance, talent and technology. 

Take San Francisco. Not surprisingly, perhaps, it ranks
first on the high-tech index and the gay index, comes in
fifth on the bohemian index and the innovation index and
12th on the creative class index. It was no accident, Mr.
Florida contends, that Silicon Valley took root just a few
miles away: "Silicon Valley was near San Francisco, where
the geeky engineer with hair down to his waist and no shoes
walks into a bar and no one blinks." 

And given these scores, it's no wonder that San Francisco
takes the top spot on the most important list of all: the
creativity index, which ranks cities according to their
overall performance and which Mr. Florida calls "a
barometer of a region's longer run economic potential." 

Other cities on the creativity index are more surprising.
Texas is not a state generally thought of as a bastion of
tolerance or technological innovation. But three Texas
cities - Austin, Dallas and Houston - rank among the list's
top 10. (New York City placed a respectable ninth.) 

Mr. Florida said even he was shocked by Texas's robust
showing. "It's very impressive," he said. "My indicators
are very strongly associated with employment growth,
technological growth and population growth. Each of these
cities has grown substantially. Austin is a growth miracle.
It has a great university and has long been a lifestyle
mecca for gays and bohemians. But 10 to 20 years ago, if
anyone said `Austin,' you would have said, `Huh?' " 

Most economists would agree, but that doesn't mean they buy
Mr. Florida's creative capital theory as the explanation.
"My view is that the best thing in terms of economic
development is to invest in your centers of higher
education," said Mark Zandi, chief economist at
Economy.com, a company in West Chester, Pa., that tracks
regional growth. "It's no surprise that Austin came up in
the last 10 to 15 years. The University of Texas got all
that oil money and invested it in technology." 

Moreover, he points out, Mr. Florida's theory fails to
account for the extraordinary success of some non-high-tech
centers like Las Vegas. More popular with gamblers and
tourists than computer geeks, Las Vegas ranks a dismal 47th
out of the 49 cities on the creativity index. Yet it had
the fastest job and population growth of any major American
city in the 1990's. 

Edward L. Glaeser, a professor of economics at Harvard,
said that high numbers of skilled, creative people are
clearly good for urban economies. But he was skeptical
about tolerance. "I don't know that anyone has shown that
tolerance is or isn't deterimental to city growth," he
said. "If you wanted to predict growth in the 90's, you
would look at warmth, skills and sprawl - low-density
car-driven culture." 

Despite such caveats, however, civic groups in several
cities - including Providence, R.I.; Memphis; Indianapolis;
Phoenix; and Bellevue, Wash. - have found Mr. Florida's
ideas compelling enough to hire him as a consultant. 

And this spring, The Austin American-Statesman gave his
theory an informal boost. Determined to find the best
explanation for why the city's population doubled in the
last 10 years, the newspaper asked Robert Cushing, a
retired sociologist at the University of Texas in Austin,
to test several academic theories: the "social capital
theory" developed by the Harvard political scientist Robert
D. Putnam, which says economic growth is tied to the amount
of civic participation and social cohesion in a community;
the "human capital theory" associated with Mr. Glaeser and
the University of Chicago economist Robert E. Lucas, which
says economic growth is driven by concentrations of
educated people; and Mr. Florida's creative-capital theory.


Mr. Cushing began with the social-capital theory. But using
Mr. Putnam's own surveys, supplemented by census data, Mr.
Cushing could find no positive connection between rates of
civic participation and economic growth. "We came away with
nothing," he said. "That doesn't mean there's nothing to
the social-capital theory, but in terms of linking it to
economic prosperity or urban growth, it was not the least
bit helpful." 

Mr. Cushing went on to test the human-capital theory. But
though he found an impressive correlation between a city's
percentage of college-educated people and growth, he was
not completely satisfied. "There are more than 100
university communities, and only 20 cities stand out as
places in which it would appear that high-tech development
is quite outstanding," Mr. Cushing said. "How do we explain
Austin?" 

Finally, and with a good deal of doubt, he turned to Mr.
Florida's theory. "When you hear about these cities that
have gays or bohos, it doesn't sound scientific," he said.
"It sounds gimmicky." To his surprise, the creative-capital
theory turned out - at least after preliminary testing - to
provide the best explanation for Austin's high-tech
transformation. "I started the exercise very skeptical of
the creative-class notion," said Mr. Cushing, whose
findings are discussed in a continuing series of articles
in the American-Statesman. "And was astonished by the
results." 

http://www.nytimes.com/2002/06/01/arts/01BOHO.html?ex=1023953211&ei=1&en=8cbb4ff058f86995



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