Inspiring the Creative Economy: How Cities Increase Economic Activity Through Innovation and The Arts

When the concept of creativity is combined with “community,” it evokes images of vibrancy, activity and prosperity. In terms of economic development, how important is California’s creative economy? Quite important, according to the Otis Report on the Creative Economy, released in late January 2014. The report notes that 7.8 percent of California’s gross state product is directly attributable to the creative industries, with an impact of more than $270 billion annually. The creative economy employs some 1.4 million people, either directly or indirectly.

“Those are big numbers,” says Kish Rajan, director of the Governor’s Office of Business and Economic Development (GO-Biz). They include more than the obvious arts jobs. Rajan explains, “The creative economy encompasses literally creative activities like art, film and entertainment. And from another perspective, it can include the software, innovation and technology industries that thrive here.”

California’s $100 billion tourism industry also benefits from the creative economy’s appeal. “People are attracted to the creativity and innovation that California is all about,” says Rajan.