November 22, 2024
Business

Study: Technology, creative economy a challenge in Maine

ORONO – New research by University of Maine economists argues that the economic development benefits from the creative economy are driven largely by the use of technology.

The creative economy is a term coined by economist and sociologist Richard Florida in his book “The Rise of the Creative Class.” The creative economy consists of any and all people who run businesses that involve creation and innovation and are frequently entrepreneurial endeavors. These people are artists, writers, architects, scientists, software engineers and graphic designers, among others.

Economist Todd Gabe and colleagues Kristen Colby and Kathleen P. Bell of the University of Maine School of Economics recently co-wrote two studies on the creative workers profiled in Florida’s book. They concluded that policymakers hoping to raise wages in Maine through the creative economy should consider focusing their efforts on computer specialists, engineers and scientists.

“People have taken Richard Florida’s work to heart and are starting to think about ways to bolster the creative economy,” Gabe said in a prepared statement. “But it is rare that I see creative economy initiatives with a strong emphasis on technology-based workers and industries.”

The researchers examined the effects of the creative economy on regional earnings and also looked at differences in the creative economy between urban and rural U.S. counties.

“The question we grappled with is the extent to which creative workers affect earnings in a region,” Gabe said. “Both studies show that creativity enhances earnings, but when you remove technology from the equation the effect disappears.”

The research also shows that U.S. rural areas lag far behind cities in these important segments of the creative economy. Controlling for other factors, the study finds that almost 12 percent of the U.S. rural-urban wage gap is explained by differences in the creative economy.

These findings provide challenges for rural states such as Maine, the researchers said.

“There’s no easy answer,” Gabe said. “We need more workers trained in these areas, as well as more technology-based companies to provide employment opportunities. Current creative economy initiatives supporting the arts should not be an end, but a means to grow technology in the state.”

The study on rural-urban differences in the creative economy will be published in an academic journal later this year.


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