The region’s creative economy is comprised of everyone who works for creative firms and enterprises – e.g., advertising agencies, museums, music studios – whether or not they are directly engaged in the process of developing creative content or products, as well as those who perform creative work on a contractual basis for firms in other industries. For example, the region’s creative economy includes a graphic designer employed full-time at the large advertising firm and a principal dancer for a ballet theater. Further, it also includes a videographer who is working freelance on the weekend, completing a corporate training video for Nationwide Insurance. Prior work by Americans for the Arts, a national research and advocacy
group, the New England Foundation for the Arts, and data from the Bureau of Labor Statistics, the U.S. Census, and the Bureau of
Economic Analysis were used to help model which industries are in Ohio’s creative economy. To simplify the analysis and give the study a sense of continuity, the industries selected are those identified by the Americans for The Arts. (See Table 1 for Industry Detail)
This study uses the IMPLAN model to calculate the economic impacts. IMPLAN breaks the economy into 536 sectors each representing a group of industrial classifications. Most of the IMPLAN sectors contain a number of sub categories. All of the Americans for the Arts industries listed in Table 1 are contained in the IMPLAN sectors shown in Table 2.
Once the analytical framework is established and the scale and scope of the creative economy quantified in terms of the workforce by industrial sector, it is possible to estimate its economic impacts on the region by using IMPLAN input-output economic modeling software.
IMPLAN is an industry standard tool used to calculate the direct, indirect, and induced impacts of spending and employment. To better understand this process, a brief look at how impacts for a creative firm’s operations are calculated is helpful. When an advertising agency spends money to pay employee salaries, buy supplies, and cover other operating expenses, it is creating the direct effect. When the businesses that supply the advertising agency with goods or services (e.g., accounting firm) pay their employees or purchase supplies, they create the indirect effect. When employees of the advertising agency and its supporting businesses spend their income, this causes the induced effect. When combined, the activity from the direct, indirect, and induced impacts is referred to as the “multiplier effect.”