INTERNATIONAL
CREATIVE CAPITAL INDEX
CREATIVE CAPITAL INDEX
SPECIAL PROJECT
A modern metropolis as a place of life and activity of a creative person is inconceivable without a diversified service sector, a rich cultural life, without daily accessible comfortable spaces, interesting events, educational programs and entrepreneurial opportunities. These resources have become today the capital of the global economic development centers and the subject of a new study prepared by TeDo and K22.
A modern metropolis as a place of life and activity of a creative person is inconceivable without a diversified service sector, a rich cultural life, without daily accessible comfortable spaces, interesting events, educational programs and entrepreneurial opportunities. These resources have become today the capital of the global economic development centers and the subject of a new study prepared by TeDo and K22.
INTERNATIONAL
CREATIVE CAPITAL INDEX
CREATIVE CAPITAL INDEX
SPECIAL PROJECT
A modern metropolis as a place of life and activity of a creative person is inconceivable without a diversified service sector, a rich cultural life, without daily accessible comfortable spaces, interesting events, educational programs and entrepreneurial opportunities. These resources have become today the capital of the global economic development centers and the subject of a new study prepared by TeDo and K22.
A modern metropolis as a place of life and activity of a creative person is inconceivable without a diversified service sector, a rich cultural life, without daily accessible comfortable spaces, interesting events, educational programs and entrepreneurial opportunities. These resources have become today the capital of the global economic development centers and the subject of a new study prepared by TeDo and K22.
ABOUT INDEX
The Creative Capital Index of Russian Cities, launched in 2016, is the first index developed by Russian experts that focuses on the creative environment of Russia. After its success, creative capital became the subject of a new pilot research project – a special benchmarking project that compares a number of global cities outside of Russia.
This is the pilot version of the International Creative Capital Index which aims to showcase the methodology developed by TeDo and K22 in the international context. Authors think that in the field of creative economy where no internationally acknowledged policy framework exists it is important to supplement the calculations of government agencies with the data from popular internet-services and surveys of creative professionals in the researched cities. The detailed description of the methodology can be found in the F.A.Q. section of the website.
The next step of the project is to develop the national version of the indexes in collaboration with the local authorities and creative professionals and rank not only the capitals but also large and medium-sized cities in the countries.
This is the pilot version of the International Creative Capital Index which aims to showcase the methodology developed by TeDo and K22 in the international context. Authors think that in the field of creative economy where no internationally acknowledged policy framework exists it is important to supplement the calculations of government agencies with the data from popular internet-services and surveys of creative professionals in the researched cities. The detailed description of the methodology can be found in the F.A.Q. section of the website.
The next step of the project is to develop the national version of the indexes in collaboration with the local authorities and creative professionals and rank not only the capitals but also large and medium-sized cities in the countries.
INDEX STRUCTURE
The developers of the Creative Capital Index set themselves the goal of taking into account the most prominent theories of the new economy and types of capital associated with the creative economy, dividing the Index into five main blocks.
defines the prevailing conditions for liveability and the development of the creative sphere. The City measure is split up into several groups of indicators, covering factors such as the cultural, social, and scientific and educational urban infrastructure, the urban environment, and economic performance.
measures the nature of a city's creative community, with indicators assessing the creative community's sociodemographic makeup and its integration with the community at large (openness, tolerance, social and cultural engagement).
determines possibilities for the commercialisation of the talents of representatives of the creative community with regard to the availability of appropriate infrastructure, as well as the quality and quantity of creative projects, and the presence of innovative infrastructure.
includes indicators reflecting the level of interest among local authorities in the development of the creative industries, as well as their openness.
illustrates the external perception of a city and its key creative brands using data from expert assessments and media analysis.
Each block consists of 2–4 subgroups, which include between 3 and 5 indicators. The Index compilers provisionally divided all indicators into 2 types: qualitative and quantitative. All data obtained from official statistical bodies, professional surveys and online services was designated as quantitative data, and the questionnaire data from local creative specialists on particular aspects of a city's development was qualitative. On average, each block has 10–20 quantitative indicators and 1–2 qualitative indicators. In total, the Index has around 200 indicators.
CITY 13.3
PEOPLE 12.6
BUSINESS 9.8
GOVERNMENT 17.2
BRANDS 17.0
TOTAL 69.8
PEOPLE 12.6
BUSINESS 9.8
GOVERNMENT 17.2
BRANDS 17.0
TOTAL 69.8
CITY 12.7
PEOPLE 12.1
BUSINESS 9.0
GOVERNMENT 16.8
BRANDS 18.0
TOTAL 68.7
PEOPLE 12.1
BUSINESS 9.0
GOVERNMENT 16.8
BRANDS 18.0
TOTAL 68.7
CITY 15.7
PEOPLE 11.5
BUSINESS 12.5
GOVERNMENT 13.0
BRANDS 14.9
TOTAL 67.8
PEOPLE 11.5
BUSINESS 12.5
GOVERNMENT 13.0
BRANDS 14.9
TOTAL 67.8
CITY 13.5
PEOPLE 10.5
BUSINESS 9.4
GOVERNMENT 15.0
BRANDS 15.9
TOTAL 64.2
PEOPLE 10.5
BUSINESS 9.4
GOVERNMENT 15.0
BRANDS 15.9
TOTAL 64.2
CITY 12.7
PEOPLE 9.3
BUSINESS 12.3
GOVERNMENT 15.4
BRANDS 13.3
TOTAL 63.1
PEOPLE 9.3
BUSINESS 12.3
GOVERNMENT 15.4
BRANDS 13.3
TOTAL 63.1
CITY 12.5
PEOPLE 10.2
BUSINESS 5.3
GOVERNMENT 16.2
BRANDS 13.2
TOTAL 57.4
PEOPLE 10.2
BUSINESS 5.3
GOVERNMENT 16.2
BRANDS 13.2
TOTAL 57.4
INDEX RESULTS
Total rating
People
City
Business
Government
Brands
F.A.Q.
Why are the creative industries important?
The creative industries today are one of the most dynamic sectors of international trade. According to the United Nations Conference on Trade and Development, over the 10 years from 1995 to 2005 the average growth rate of the creative services market on a global scale was 8.8%. The global financial crisis of 2008 caused a general drop in demand and reduced world trade by 12%, but the creative economy continued to grow at an annual rate of 14%.
In accordance with the statistics presented by the UN in a special report, Creative Economy Report 2013, the volume of sales of creative goods and services reached a record value of $624 billion in 2011, which is more than twice the 2002 figure. The contribution of the creative industries to the gross domestic product of nations around the world averages 2–6% depending on the specific sector, and the average employment in these sectors is about 2–8% of the total number of employees.
Special attention should be paid to the experience of Western European countries, which were among the first to turn their attention to the potential of creativity. According to the UN report, the creative industries of Western European countries account for about 5–9% of the economy.
In accordance with the statistics presented by the UN in a special report, Creative Economy Report 2013, the volume of sales of creative goods and services reached a record value of $624 billion in 2011, which is more than twice the 2002 figure. The contribution of the creative industries to the gross domestic product of nations around the world averages 2–6% depending on the specific sector, and the average employment in these sectors is about 2–8% of the total number of employees.
Special attention should be paid to the experience of Western European countries, which were among the first to turn their attention to the potential of creativity. According to the UN report, the creative industries of Western European countries account for about 5–9% of the economy.
How are the creative industries and innovation connected?
Underlining the importance of innovation to the economy has long been commonplace in the work of economists. Philippe Aghion and Peter Howitt (A Model of Growth Through Creative Destruction, 1992) were the first to create a model of long-term economic growth based on innovation. They showed that the development of the economy occurs first due to technological progress, which renders older companies and production methods obsolete, with the result that they are replaced by more profitable and efficient methods and businesses. Expenditures on technology worldwide exceeded $6.3 trillion in 2016, making it the "third largest economic force" in terms of GDP after the United States and China, according to a State of Global Technology report published in 2018.
Innovation, however, does not come about in and of itself. One of Aghion and Howitt's ideas states that for innovation you need to have a good business climate and a special environment for new ideas to be born. In his book, The City as an Entertainment Machine, Professor Terry Clark of Columbia University notes the relationship between a developed cultural scene and a concentration of entrepreneurial projects. Jesse Shapiro, named by The Economist magazine as one of the ten most influential economists on the planet traces, in Smart Cities, the direct relationship between the quality of city services and the influx of highly qualified specialists to these cities. Many others point out the importance of sociocultural diversity.
More importantly, innovations are, in most cases, not viable without the creative industries, as they need design, branding and promotion. Creative professionals have a huge impact on the final technological product. According to a study by McKinsey & Company (The Business Value of Design, 2018), companies that earned more points on a specially produced Design Index showed on average twice as much revenue and capital return as compared to companies that paid less attention to design.
Innovation, however, does not come about in and of itself. One of Aghion and Howitt's ideas states that for innovation you need to have a good business climate and a special environment for new ideas to be born. In his book, The City as an Entertainment Machine, Professor Terry Clark of Columbia University notes the relationship between a developed cultural scene and a concentration of entrepreneurial projects. Jesse Shapiro, named by The Economist magazine as one of the ten most influential economists on the planet traces, in Smart Cities, the direct relationship between the quality of city services and the influx of highly qualified specialists to these cities. Many others point out the importance of sociocultural diversity.
More importantly, innovations are, in most cases, not viable without the creative industries, as they need design, branding and promotion. Creative professionals have a huge impact on the final technological product. According to a study by McKinsey & Company (The Business Value of Design, 2018), companies that earned more points on a specially produced Design Index showed on average twice as much revenue and capital return as compared to companies that paid less attention to design.
Which theories provide the foundations for the Creative Capital Index?
The theoretical foundations are the works of the pioneers of the idea of the new economy. Economists such as Richard Florida (The Rise of Creative Class – revisited, 2010), John Howkins (The Creative Economy: how people make money from ideas, 2013) or Klaus Schwab (The Fourth Industrial Revolution, 2016) note the importance of cities that accumulate creative capital as cultural and innovative hubs. They inspire entrepreneurs to join projects and attract investment through competent urban policy and the creation of comfortable conditions for representatives of the creative class: developed infrastructure, incentives for individuality and opportunities for self-expression.
With his so-called '3T approach', Richard Florida devised an index based on three groupings – talent, technology and tolerance. Talent was intended to measure a city's human capital (the percentage of a city's population with higher education) and research talent (percentage of researchers and scientists). Technology was understood as an average of the innovation index and the researchers index. The first is calculated by measuring the number of patents issued per capita. The researchers index is the investment in R&D as a share of GDP. In Florida's model, the tolerance index combines a values index and a self-expression index. The values index is based on an assessment of the level of discord between traditional and modern societies, while the self-expression index measures tolerance of social minorities and migrants.
Florida's index has gained widespread popularity and served as a template for similar indices. Nevertheless, the index has been received with ambivalence by the research community. This is largely due to a nebulous understanding of the creative class and the professions which constitute it, and the limitations of the model in terms of the index's parameters, which for the most part assess science and innovation and underestimate the role of culture and creativity in and of itself. Subsequently many researchers, and in particular Landry (Creative Cities Index), Hagel and Brown (The big shift: Measuring the forces of change, 2009), have accepted the need to take the 'three Ts' into account in new models of the Global Creativity Index, but noted the absence of important elements, such as urban environment, government attitudes towards the creative sector, the involvement of local residents in the cultural and social life of a city, and opportunities for realising one's artistic potential, among others, all of which have a considerable impact on a city's attractiveness and its ability to fulfil the potential of its creative capital.
This criticism was taken into account by the developers of the Creative Capital Index, which led to the creation of a proprietary methodology. The authors of the Index not only take into account the importance of human resources, but also single out tangible and intangible assets as independent elements which can lead to the creation of new products and services when exploited effectively by creative specialists. Examples of such assets include urban infrastructure, unique traditions, brand attractiveness, cultural and historical monuments, developed theatrical, gastronomic and music scenes and much more.
With his so-called '3T approach', Richard Florida devised an index based on three groupings – talent, technology and tolerance. Talent was intended to measure a city's human capital (the percentage of a city's population with higher education) and research talent (percentage of researchers and scientists). Technology was understood as an average of the innovation index and the researchers index. The first is calculated by measuring the number of patents issued per capita. The researchers index is the investment in R&D as a share of GDP. In Florida's model, the tolerance index combines a values index and a self-expression index. The values index is based on an assessment of the level of discord between traditional and modern societies, while the self-expression index measures tolerance of social minorities and migrants.
Florida's index has gained widespread popularity and served as a template for similar indices. Nevertheless, the index has been received with ambivalence by the research community. This is largely due to a nebulous understanding of the creative class and the professions which constitute it, and the limitations of the model in terms of the index's parameters, which for the most part assess science and innovation and underestimate the role of culture and creativity in and of itself. Subsequently many researchers, and in particular Landry (Creative Cities Index), Hagel and Brown (The big shift: Measuring the forces of change, 2009), have accepted the need to take the 'three Ts' into account in new models of the Global Creativity Index, but noted the absence of important elements, such as urban environment, government attitudes towards the creative sector, the involvement of local residents in the cultural and social life of a city, and opportunities for realising one's artistic potential, among others, all of which have a considerable impact on a city's attractiveness and its ability to fulfil the potential of its creative capital.
This criticism was taken into account by the developers of the Creative Capital Index, which led to the creation of a proprietary methodology. The authors of the Index not only take into account the importance of human resources, but also single out tangible and intangible assets as independent elements which can lead to the creation of new products and services when exploited effectively by creative specialists. Examples of such assets include urban infrastructure, unique traditions, brand attractiveness, cultural and historical monuments, developed theatrical, gastronomic and music scenes and much more.
What is the creative capital of the city?
Creative capital is understood by the authors of the Index to mean the aspects of the social climate, cultural and educational landscape, institutional infrastructure, and informational space which help to attract representatives of the creative professions and allow them to realise their potential, taking into account both global trends and regional specifics. The Index focuses on the creative industries, as well as their relation to the field of technological innovations, making it possible to speak about a single innovative and creative sector.
Therefore, creative capital is understood as the sum of the parts of existing capitals in the city, which impact the development of the city's creative economy. The following list comprises the various types of capital developed by modern economists, which the authors of the Index deem to be relevant in determining a city's creative economic potential:
Therefore, creative capital is understood as the sum of the parts of existing capitals in the city, which impact the development of the city's creative economy. The following list comprises the various types of capital developed by modern economists, which the authors of the Index deem to be relevant in determining a city's creative economic potential:
- Human capital — the quality and quantity of social connections in the city and the sum of knowledge, skills and capabilities of people living in the city;
- Infrastructure capital — the quantity and quality of the city's ecological resources: forests, parks, water and air; buildings and infrastructure: residences, parks, commercial and industrial buildings; the city's intellectual resources in the form of its educational system, industry specialists and protected know-how;
- Institutional capital — the quality of institutional work in the city in terms of its efforts to reduce transaction costs for actors in the urban economy;
- Economic capital — the quantity and quality of the city's businesses, which mobilise other forms of capital and create new products and the accessibility and scale of financing in the form of credit, investments and residents' personal savings;
- Symbolic capital — resources available to the city on the basis of prestige and recognition.city on the basis of prestige and recognition.
What are the data collection methods and sources?
The main data sources are national statistic agencies, individual ministries, municipal and regional authorities, statistical compilations and analytical reports from professional associations, consulting companies, and ratings prepared by Russian and foreign analytical agencies. The index is complemented by data from popular geotags, crowdfunding, and video and photo services, which has made it possible to measure creative activity that is not recorded by official statistics. The survey of creative specialists was conducted with the help of an online survey. Finding respondents was done using the snowball sampling method and online promotion. The total number of respondents was more than 900 with a minimum sample of at least 100 respondents from each city.
It should be noted that the survey also assumed the presence of 'quotas', that is to say that during the field study we interviewed an equal number of respondents representing several target groups to ensure balance in the final results. The representation of each group was at least 20% of the minimum sample. Representatives of the basic target groups included specialists whose activities relate to the following areas: fashion and design; IT and digital technologies; art and culture; media and communications; and science and education.
It should be noted that the survey also assumed the presence of 'quotas', that is to say that during the field study we interviewed an equal number of respondents representing several target groups to ensure balance in the final results. The representation of each group was at least 20% of the minimum sample. Representatives of the basic target groups included specialists whose activities relate to the following areas: fashion and design; IT and digital technologies; art and culture; media and communications; and science and education.
How the final indicators were calculated?
STANDARDISATION OF THE INDICATORS
To make it easier to compare the data, the selected indicators were adjusted according to population size or urban area and normalised using the maximum value among cities for each indicator. Thus all indicators, including survey data, were assigned a value between 0 and 1. A similar strategy was used when calculating general indicators at the level of subgroups and indicator blocks.
DISTRIBUTION OF WEIGHING
Quantitative and qualitative indicators provided an equal weighting of 50% in determining the final indicator of a particular subgroup or block. If a question in the questionnaire applied to a specific subgroup, then the total value was calculated as an arithmetic average of a group of quantitative and qualitative indicators. If a quality indicator applied to the block as a whole, then the total indicator was derived as an average of the indicators of the subgroups and the given quality indicator.
At the index level all 5 blocks (City, People, Business, Government, Brands) were weighted equally.
To make it easier to compare the data, the selected indicators were adjusted according to population size or urban area and normalised using the maximum value among cities for each indicator. Thus all indicators, including survey data, were assigned a value between 0 and 1. A similar strategy was used when calculating general indicators at the level of subgroups and indicator blocks.
DISTRIBUTION OF WEIGHING
Quantitative and qualitative indicators provided an equal weighting of 50% in determining the final indicator of a particular subgroup or block. If a question in the questionnaire applied to a specific subgroup, then the total value was calculated as an arithmetic average of a group of quantitative and qualitative indicators. If a quality indicator applied to the block as a whole, then the total indicator was derived as an average of the indicators of the subgroups and the given quality indicator.
At the index level all 5 blocks (City, People, Business, Government, Brands) were weighted equally.
What are the differences from other indices?
CCI works with the concept of creative capital for a more precise explanation of the reasons why certain cities are more likely to be at the forefront of social and economic development. Creative capital is determined by a variety of direct and indirect indicators, which makes it possible to overcome problems faced by all creative indices such as a lack of data and statistical heterogeneity.
The index takes into account both traditional statistical parameters, as well as social networking data, geo-services, recruiting resources, online platforms, and the results of specially conducted surveys of creative professionals. The statistical work on the index, the parameters associated with the development of modern
technologies, and the online space have taken off globally in recent years. These indicators show the level of integration of the creative community in the global information environment.
Exclusive tailored surveys of creative professionals, assessing the quality of economic and social policy of local policymakers, the degree of comfort in the environment, infrastructural development etc. adds to the index's valuable depth. Assembled by a group of independent experts, the index comprises qualitative data on the quality and competitiveness of creative brands, creative entrepreneurial projects, and initiatives from the perspective of current world trends.
The index takes into account both traditional statistical parameters, as well as social networking data, geo-services, recruiting resources, online platforms, and the results of specially conducted surveys of creative professionals. The statistical work on the index, the parameters associated with the development of modern
technologies, and the online space have taken off globally in recent years. These indicators show the level of integration of the creative community in the global information environment.
Exclusive tailored surveys of creative professionals, assessing the quality of economic and social policy of local policymakers, the degree of comfort in the environment, infrastructural development etc. adds to the index's valuable depth. Assembled by a group of independent experts, the index comprises qualitative data on the quality and competitiveness of creative brands, creative entrepreneurial projects, and initiatives from the perspective of current world trends.
What is the practical value of the index?
Creating this index not only makes it possible to gain additional knowledge about global developmental trends in the creative economy, but also gives actionable insights for decision- makers in the regions' administrative and business communities, providing direction for the development of a better creative economy in their cities. The main benefits of the Index can be grouped into four key blocks.
GLOBAL RANKING OF CREATIVE CAPITALS
Creating a global ranking makes it possible to determine the leaders in the development of the creative economies, which can serve as examples to other cities. As well as identifying the leaders, the Index's methodology allows for an understanding of the basis for leadership in the global creative economy. This could lead to the creation of guidelines on devising development strategies for creative urban economies.
ANALYSIS OF CITIES' STRONG AND WEAK POINTST
The Index offers considerable detail on all aspects of a city's development in terms of creative capital. As a result, various strategies for capitalising on a city's achievements and countering its weaknesses can be devised on the basis of an aggregate assessment of its stronger and weaker points.
COMPARISON OF PERCEPTIONS OF CITIES WITH REALITIES
The Brands block of the Creative Capital Index measures perceptions of a city among creative specialists who don't live in the city in question.
The presence of this 'metablock' makes it possible, firstly, to test Florida's theory that cities with a developed creative economy are more attractive to creative specialists. Secondly, it help to identify any disconnect between the perception of a city among creative specialists and the actual state of affairs in the city's creative economy as shown in the main blocks of the Index. It can therefore serve as a signal to the city that it should concentrate on promoting its strengths or address the risk that the expectation of creative specialists about the city's competence in a given area will not be met.
ANALYSIS OF INTERRELATIONS AND CREATION OF A TYPOLOGY OF CREATIVE CITIES
Another method for identifying insights is finding relationships between different indicators in
the Index based on the examples of the creative economies in various cities.
In the Russian Index correlations were identified between:
be possible in future, based on relationships of this nature, to develop a typology of cities that will allow for the clustering of creative cities into various categories.
GLOBAL RANKING OF CREATIVE CAPITALS
Creating a global ranking makes it possible to determine the leaders in the development of the creative economies, which can serve as examples to other cities. As well as identifying the leaders, the Index's methodology allows for an understanding of the basis for leadership in the global creative economy. This could lead to the creation of guidelines on devising development strategies for creative urban economies.
ANALYSIS OF CITIES' STRONG AND WEAK POINTST
The Index offers considerable detail on all aspects of a city's development in terms of creative capital. As a result, various strategies for capitalising on a city's achievements and countering its weaknesses can be devised on the basis of an aggregate assessment of its stronger and weaker points.
COMPARISON OF PERCEPTIONS OF CITIES WITH REALITIES
The Brands block of the Creative Capital Index measures perceptions of a city among creative specialists who don't live in the city in question.
The presence of this 'metablock' makes it possible, firstly, to test Florida's theory that cities with a developed creative economy are more attractive to creative specialists. Secondly, it help to identify any disconnect between the perception of a city among creative specialists and the actual state of affairs in the city's creative economy as shown in the main blocks of the Index. It can therefore serve as a signal to the city that it should concentrate on promoting its strengths or address the risk that the expectation of creative specialists about the city's competence in a given area will not be met.
ANALYSIS OF INTERRELATIONS AND CREATION OF A TYPOLOGY OF CREATIVE CITIES
Another method for identifying insights is finding relationships between different indicators in
the Index based on the examples of the creative economies in various cities.
In the Russian Index correlations were identified between:
- a city's creativeness and its openness and tolerance;
- a city's creativeness and its attractiveness;
- the expert assessment of a city's image and its final indicators in the Index;
- a city's level of social and entrepreneurial activity and both the business image and cultural environment of the city;
- the quality of a city's cultural life and the size of its creative economy;
- a city's level of education and both the quality of its creative brands and its cultural offer;
- a city's social activity and the development of its creative community;
- a city's entrepreneurial activity and the size of its creative economy.
be possible in future, based on relationships of this nature, to develop a typology of cities that will allow for the clustering of creative cities into various categories.
CONTACTS
As with any composite study, the Creative Capital Index does not claim to be completely objective. The work of the Index is an invitation to long- term cooperation for all public organisations and representatives of local authorities, business and the creative community who are interested in promoting the new economy in global cities.
The company Technologies of Trust (TeDo) provides auditing and consulting services to companies in various industries. There are about 3,000 specialists working in the Trust Technologies offices in Moscow, St. Petersburg, Yekaterinburg, Kazan, Novosibirsk, Rostov-on-Don, Krasnodar, Voronezh, Vladikavkaz, and Nizhny Novgorod.
info@tedo.ru
tedo.ru
The K22 bureau has been engaged in the analysis of the creative economy, social design, local communities, and urbanism for over 10 years, providing a complete cycle of work, from the formation of methodology and field research to the creation of digital platforms for public presentation of results.
info@k22.online
k22.online
NEW YORK
Over the past decade, creative industries have become the fastest growing segment of New York's economy, overtaking the traditionally successful finance, insurance and legal service sectors. According to the Creative New York study released by the Urban Future Center in 2015, New York is ahead of such US creative centres as San Francisco and Los Angeles in terms of the number of people employed in the creative economy. However, despite economic growth and large-scale diversification of the creative sector in New York, its continued development has been cast into question in the light of huge investments into other creative capitals such as Montreal, London and Berlin. The emergence of new creative centres comes of little surprise, given the now extortionate cost of living in New York. New York's economy is based on finance, services, trade, industry, utilities, construction, transportation, advertising and media. The centre of New York is home to large banks, stock exchanges and insurance companies, and hosts 44 headquarters of leading US corporations, putting the city at the top of the list of US cities in terms of concentration of large businesses. Today creative clusters in New York today are home to 28% of all US fashion designers, 14% of filmmakers and producers, and 12% of editors in all print media.
- At the heart of New York's creative sector is the media industry (making up 50.5%). Next is design and architecture, which accounts for a quarter of the total creative economy. Unlike other cities in which the IT industry plays a more significant role, in New York digital technologies stand in third place (18%).
- Media comes top in terms of contribution to the gross added value growth of the creative sector (45%) followed by the design and architecture industry (29%).
- Digital technologies and the cultural economy occupy 21% and 5%, respectively.
- Half of employees in New York's technology sector are working in computer system design.
- The average annual growth rate of the creative sector in New York was 5%, while the rest of the economy grew by 3.8% annually.
- Every 9th New Yorker contributes to the creative economy. More than 9% of all US creative specialists live and work in the city.
- The average New Yorker has to pay more than 2/3 of his salary to rent a one-bedroom apartment in the centre, and slightly less than a half for an apartment outside the city centre.
- New York is one of the most ethnically and racially diverse cities in the United States. 38% of city residents were born abroad, and in the next ten years the number of different cultures represented in New York will only increase. The experts we surveyed recognised New York as the most tolerant city evaluated in the index.
- New York is characterised by high rates of entrepreneurial activity, by this indicator the city ranks first in the index. For each 1,000 inhabitants of New York more than 22 small and medium-sized businesses operate in the city. On one hand, the development of the small- and medium-sized business sector has historically been supported by the authorities. On the other, non-profit small and medium-sized organisations do not always find support from the authorities and do not have the opportunity to receive funding from NGOs.
- New York has high levels of income inequality. New York's authorities are trying to level all financial constraints that prevent creative specialisation. The Made in NY educational programme was set up in 2006 with the support of the mayor, with the goal of providing jobs for the low-income population in the form of entry-level positions in film production and the TV industry, as well as attracting new people to the industry.
LONDON
In the 1980s London became the first global capital to develop an economic strategy focused on creative industries. Since then the creative sector has been central to policy-making decisions and has become highly successful and the most dynamic area of London's economy. London is the world's financial centre, where leading global companies meet experimental start-ups, where technology and creativity come together to form a unique climate that draws in creative professionals and encourages new businesses to grow. This is largely the result of educational reform and a relatively open migration policyLocal universities offer the broadest range of programmes for creative specialists, putting London at the top of the list in terms of educational infrastructure.
- London is also a leader in international conferences and professional events — a third of the events on media and digital technologies taking place in our featured cities are held in London.
- Among the cities evaluated in this study, London has seen the greatest support for creative industries from local government. A prime example is the Tech City programme, launched in 2010 to support the local digital sector and create the Silicon Roundabout technological cluster in east London. Rethinking intellectual property rights has also been crucial for the sector.
- In terms of internet infrastructure London is also ahead of the other cities. Tech companies are granted free office internet access as part of the Super-connected Cities programme, which has a total budget of 100m GBP.
- London is lively both night and day, with the nightlife economy a key priority for city authorities. In 2016 the first Night Mayor was appointed to develop the nighttime infrastructure and manage logistics, security and travel. Another initiative underway is 24-hour London, which seeks to make London the world's nightlife capital through late night museum openings and an extended cultural programme.
- Every 8th Londoner is employed in the creative sector, with this population making up an estimated 11% of the city's economy, the highest among the cities surveyed here.
- The creative sector has grown by 8% over the last five years, compared to a 5% average for the economy as a whole. Architecture (22%), along with advertising and marketing (20%), are among the most rapidly developing parts of the economy.
- The cultural economy makes up 12% of London's creative economy compared to 4 — 8% in the other cities analysed, making London the world's cultural capital. Research also shows that the cultural economy is the most rapidly growing segment of London's creative economy, surpassing crafts with its 17.5% average annual growth and the 11% annual growth of music and performing arts.
SYDNEY
Sydney is Australia's most densely populated city, with an enviable climate and high quality of life. In 2007, Sydney commissioned urbanist Jan Gehl to oversee a redesign of the city centre. As a result, the city saw new light rail and ferry routes, as well as more green space and bicycle lanes.
Sydney hopes to reap the rewards of the global boom in the creative economy: in 2013 the government developed its Industry Action Plan for the creative industries, focused on supporting the advertising, design, music and film industries in the city.
Sydney hopes to reap the rewards of the global boom in the creative economy: in 2013 the government developed its Industry Action Plan for the creative industries, focused on supporting the advertising, design, music and film industries in the city.
- 39.6% of Australia's entire creative industry workforce is based in New South Wales, where Sydney is the region's dominant economic power;
- Sydney took first place in the ranking of global capitals by academic success; it leads by number of students, number of students at THE top 500-ranked universities, and by average number of university courses dedicated to the creative disciplines;
- Sydney is one of the index's leading cities by economic status, and by the openness and tolerance of its residents;
- Sydney is undergoing unprecedented urban expansion, with its territory forecast to increase in size by 33% by 2030. To ensure good governance of the new territory, the government is adopting modern design principles in the development of transport infrastructure, housing, and urban infrastructure projects;
- Sydney is fast becoming a global festival capital. The Sydney Festival, Sydney Film Festival, Sydney Writers' Festival and Biennale of Sydney attract over 1.4 million visitors each year. The Vivid Sydney festival of light, music and ideas drew a record 2.33 million visitors in 2017.
MOSCOW
Over the past two decades, the structure of Moscow's economy has become similar to the economic structure of the world's largest cities. The trade sector makes up around half, followed by business services, research and development. Information technology comes in third place in terms of added value. Most large countrywide companies are located in Moscow, as well as the majority of international companies operating in regional Russian markets.
The city has a favourable environment for attracting investment and launching IT projects. The headquarters of the biggest venture funds — Runa Capital, IMI.VC, ru-Net Ventures — are located in Moscow. Creative industries are not included in official Russian government statistics, but based on data pertaining to other economic areas it is possible to define the sector's key components. Moscow is among the world's top five cities for volume of advertising services.
The city has a favourable environment for attracting investment and launching IT projects. The headquarters of the biggest venture funds — Runa Capital, IMI.VC, ru-Net Ventures — are located in Moscow. Creative industries are not included in official Russian government statistics, but based on data pertaining to other economic areas it is possible to define the sector's key components. Moscow is among the world's top five cities for volume of advertising services.
- Over the last three years employment in Moscow's creative sector has dropped. The 2014 crisis and consequent redistribution of labour resources has had a visible impact on the media sphere (-22% for 2010-2015), design and architecture (-5%), art and culture (-5%), as well as IT(-10%). A significant number of employees switched to freelance work.
- The growth of the creative sector's share of Moscow GRP significantly exceeds other cities, coming second only to Berlin. While the overall volume of Moscow's economy has grown by 12%, the creative sector has increased by 22%. The main drivers of this rapid growth are digital technologies (+41% annually), design and architecture (+20% annually), and culture and arts (+14% annually). Growth in the media sphere has been lower than the average at just 7%.
- Moscow has demonstrated the fastest growth in added value in the sphere of digital technologies (+207% for 2010-2015), 3.3 times more than Moscow GRP growth for the same period.
- Moscow's labour market has the highest level of accessibility for creative professionals in the media sphere, along with culture and arts. Competition among job seekers in the media sphere exceeds the average rate by three times (5 and 1.5 people per position, respectively), while the level of competition for positions in the culture and arts sphere is two times higher than average (6 and 2 people, respectively).
- The system of support for creative companies has developed unevenly and prioritises high-tech and internet projects. In 2013, the Moscow government initiated the Portal for Suppliers project (its main feature is providing support for small-scale procurement) which increases opportunities for small- and medium- sized businesses opportunities to work with state tenders and procurement.
- Moscow's authorities pursue policies of citizen involvement, encouraging discussions on public problems, as well as launching special services and portals to connect citizens with government representatives. One of the most well-known examples is the Active Citizen platform, which is used for voting on a variety of public issues.
- Moscow falls behind the other cities in terms of media representation, coming ahead of Seoul alone. This situation may be due to the prevalence of English in the global media.
Nur-Sultan
Nur-Sultan is a modern city with a favorable environment attractive for tourists and comfortable for residents and guests of the Kazakh capital to live in. The capital of the Republic of Kazakhstan since 1997 is situated on a picturesque bank of the Ishim River.
In 1999 by decision of UNESCO, Nur-Sultan city was awarded the title of World City. The city has an opera and Ballet Theater, a drama theater and a variety of museums. The monuments of Nur-Sultan city are a linking element between the new capital and its history, held in esteem by all the people of Kazakhstan.
Nowadays Nur-Sultan city besides differing by its refined architecture is also turning into a garden city. The city's "green belt" is getting wider and accordingly Nur-Sultan city is becoming a green oasis in the centre of huge steppes, being a model of non-polluting megacity. Nur-Sultan city's mission is to become a cultural and intellectual centre of the Eurasian space and to play a role of the main generator of Kazakhstan's sustainable development.
In 1999 by decision of UNESCO, Nur-Sultan city was awarded the title of World City. The city has an opera and Ballet Theater, a drama theater and a variety of museums. The monuments of Nur-Sultan city are a linking element between the new capital and its history, held in esteem by all the people of Kazakhstan.
Nowadays Nur-Sultan city besides differing by its refined architecture is also turning into a garden city. The city's "green belt" is getting wider and accordingly Nur-Sultan city is becoming a green oasis in the centre of huge steppes, being a model of non-polluting megacity. Nur-Sultan city's mission is to become a cultural and intellectual centre of the Eurasian space and to play a role of the main generator of Kazakhstan's sustainable development.
Hong Kong
Towering skyscrapers against a mountainous backdrop sit side by side with small fishing villages, where local residents proudly cling onto their cultural heritage. Hong Kong's arts and creative industries are famous throughout the world for their cultural affinity with both the east and the west.
The government is actively promoting the development of the creative industries in the hope of turning Hong Kong into the creative capital of Asia. Founded in 2009, Create Hong Kong is an initiative tasked with the development of the creative industries in Hong Kong, assisting creative professionals through the provision of services, as well as financial and knowledge-based support.
The government is actively promoting the development of the creative industries in the hope of turning Hong Kong into the creative capital of Asia. Founded in 2009, Create Hong Kong is an initiative tasked with the development of the creative industries in Hong Kong, assisting creative professionals through the provision of services, as well as financial and knowledge-based support.
- From drama to dance, pop music to Chinese opera, Hong Kong is a hub of eastern and western performing arts. Hong Kong is home to over 1,000 art collectives giving more than 8,000 performances each year, which attract over 3 million visitors;
- Hong Kong Arts Festival takes place annually in February and March. It is one of the most important international festivals in Asia, hosting performances from local, Asian and western collectives representing music, theatre, dance and opera. There are over 100 events on the programme every year, including classical and traditional works, as well as more modern and creative interpretations;
- Recent figures suggest that there are around 40,000 institutions dedicated to the cultural and creative industries operating in Hong Kong, employing over 200,000 professionals. The creative industries account for around 5% of Hong Kong's GRP;
- Hong Kong ranks among the top four cities in the Creative Capital Index by levels of education across society; international programmes to assess educational achievements have ranked the students of Hong Kong first among the global capitals.
HELSINKI
Helsinki today is an international metropolis, still retaining the atmosphere of a small city. A strategy based on equality, non-discrimination, and open and inclusive engagement with residents has been in place since 2017, with a view to turning Helsinki into the world's best functioning city. Every year the city spends around €17 million on developing its art and culture.
- Helsinki is the top ranked city by development of the urban environment and creative infrastructure;
- Over half of Finland's architects work in Helsinki;
- Helsinki is a world leader in government disclosure and use of public data;
- In 2016 Helsinki became the first city in the world to appoint a Chief Design Officer, with Finnish architect Anne Stenros taking on the role. Helsinki was awarded the status of World Design Capital in 2012;
- Helsinki's most popular music festival, Flow, saw attendance of 75,000 visitors from across Europe;
- The Port of Helsinki is one of Europe's busiest. In 2017 over 12.3 million passengers came through the port on the way to Tallinn, St Petersburg, Stockholm and other cities in Europe.
BERLIN
Over a decade ago, the then Mayor of Berlin Klaus Wowereit attempted to attract creative professionals to the city with the slogan "Berlin is poor, but sexy". Cheap rent and favourable policies towards small- and medium-sized businesses have made Berlin attractive for young creative Europeans, who perhaps couldn't afford to reside in London or Paris. The Create Berlin programme was launched by local businesses together with city authorities, aimed at strengthening cooperation between the design industry and local government. The initiative has enabled the proliferation of creative projects across the city. Create Berlin became a platform through which Berlin's brightest minds could communicate and cooperate to solve urban issues, while providing a connection between the local population and city authorities.
- Berlin's creative sector comprises 8.5% of the city's economy, the third biggest share in the world after London and New York. TV and radio broadcasting make up the largest share (11%), followed by publishing activities (20%), digital technologies (16%), and the music industry (6%).
- Over the last five years the creative sector's share of employment has seen a 15% increase and now makes up 12.3%, meaning that every eighth employee in Berlin is working in the creative industries.
- Relative to the other cities in the index, Berlin has the most dynamic creative economy. The growth rate of the creative sector has been twice the rate of overall economic growth. While in 2009 the creative sector made up less than 8% of the GRP, by 2014 its share of Berlin's economy had already exceeded 10%.
- Berlin is successfully competing with London, enticing young projects and startups. A decade ago Berlin was home to just several dozen technological startups. According to the Regional Agency of Economic Growth, Berlin now has 70% more employment positions in the digital industries than in 2008.
- The German government is sponsoring venture funds and offers low-interest loans to startups through the state bank. Although the so-called "old school" big companies, such as Siemens and SAP, remain the most notable technological brands in Germany, they are no longer the main priority for IT developers in the early stages of their careers.
- Berlin is the European capital of cinema. The Berlin International Film Festival is a major cultural event for the global film industry. Besides the film screening programme, the festival hosts events such as forums, discussions, and workshops.
- In just 20 years, Berlin's nightlife has become a highly-organised industry that brings thousands of visitors to the city annually.
- Berlin's citizens are visibly active in science and education. They publish scientific papers almost twice as much as in the other cities included in this index and also register twice as many patents.
- According to both statistics and the evaluation of experts, the level of development of the urban environment is higher in Berlin than in the other cities. The city is one of the world's most attractive due to its rich cultural offering and the moderate cost of living. The rent for a one-bedroom apartment in the centre of Berlin requires one-third of the average salary, while in New York, Moscow and London a similar flat would cost about two-thirds. Renting an apartment beyond the city centre in Berlin would require spending a quarter of the average salary, compared to half in London, Moscow and New York. A low cost of living taken together with high salaries make Berlin especially attractive for young creative professionals from Europe, who can't afford to live in London or New York.
- Berliners are open and tolerant towards people with different socio-cultural backgrounds.
- Berlin outperforms the other cities in terms of density of innovation and creativity infrastructure. The density of the creative infrastructure stands at three times the average, which can be explained by the fact that Germany was one of the pioneers of the Fourth Industrial Revolution — a digital revolution driven by progress in digital technologies. The intense rate of development of creative infrastructure illustrates the priority given to the creative sector by the government of Berlin.
- Berlin's public image is significantly lower than that of New York, but it has overtaken its European competitor, London.
TEL AVIV
Founded a little over 100 years ago on sand dunes, today Tel Aviv is a booming hub for innovation and creativity. One of the world's leading "start-up cities" of just 400,000 residents is home to almost 2,000 startups and tech companies. Its open and accepting culture, a unique urban design that encourages social interaction, bold and inventive people – all contributed to the city's exceptional creative ecosystem and a flourishing art scene.
In 2014, Tel Aviv became a member of UNESCO's Creative Cities Network in the category of Media Arts, which demonstrates the world's recognition of Tel Aviv as a vibrant center of cultural diversity and groundbreaking technology.
In 2014, Tel Aviv became a member of UNESCO's Creative Cities Network in the category of Media Arts, which demonstrates the world's recognition of Tel Aviv as a vibrant center of cultural diversity and groundbreaking technology.
International Creative Capital Index, 2021