Otis report finds the creative economy outpacing other industries in Los Angeles, but spreading the wealth remains a challenge
By Evan Henerson
Better luck next year, Big Apple.
In terms of total jobs and direct labor income, Los Angeles can boast the title of America’s Most Creative City — easily outdistancing metropolitan competitors like Chicago, New York and the San Francisco Bay Area, according to data compiled by the Otis College of Art and Design and the Los Angeles County Economic Development Corporation.
But while the creative economy may be flourishing locally, the economic news for the country as a whole is somewhat less rosy, said the Nobel Prize-winning economist who coined “Of the 1%, by the 1%, for the 1%.”
“I think we know what to do to make our economy more equal, to have more shared prosperity and to have faster economic growth,” said Dr. Joseph E. Stiglitz, a professor at Columbia University and former chief economist of the World Bank. “Our problem isn’t the economics so much as the politics, and in the United States the intertwining of the influence of the money in our politics makes change all the more difficult.”
Speaking last week at Bob Hope Patriotic Hall, Stiglitz gave the keynote address for the launch of the 2015 Otis Report on the Creative Economy. Since 2007, Otis has commissioned the county’s Economic Development Corporation (LACEDC) to produce a report measuring the economic impacts of the creative industries in Los Angeles.
For the past three years, researchers have expanded the scope of the Otis Report to encompass the entire state of California. Civic leaders and nonprofit arts organizations alike have regularly cited data from the Otis Report to demonstrate the impacts of their programs.
“It’s a powerful advocacy tool,” said Otis President Bruce W. Ferguson. “The report has also inspired countless municipalities, both in the U.S. and abroad, who continue to research and document the economic contributions of arts and businesses in their communities.”
Highlights from the 2015 report — which covers 2009 through 2014 — include 744,100 jobs in the Los Angeles and Orange County region generating nearly $177 billion in revenue, spending and economic activity. The region’s creative industry had a net contribution of $109 billion as well as generating $7.7 billion in tax revenue. One in six jobs in L.A. County is in a creative industry, accounting for 18% of the county’s wage and salary employment.
The data considers both jobs directly related to creative industries (entertainment, fashion, publishing, digital media, architecture, product design and visual art) as well as jobs that are indirectly related or induced by creative industries.
Within the report, LACEDC defines the creative economy to include both “the businesses and individuals involved in producing cultural, artistic and desi