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Design, innovation, and rural creative places: Are the arts the cherry on top, or the secret sauce?

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  • Timothy R Wojan
  • Bonnie Nichols

Abstract

Objective: Creative class theory explains the positive relationship between the arts and commercial innovation as the mutual attraction of artists and other creative workers by an unobserved creative milieu. This study explores alternative theories for rural settings, by analyzing establishment-level survey data combined with data on the local arts scene. The study identifies the local contextual factors associated with a strong design orientation, and estimates the impact that a strong design orientation has on the local economy. Method: Data on innovation and design come from a nationally representative sample of establishments in tradable industries. Latent class analysis allows identifying unobserved subpopulations comprised of establishments with different design and innovation orientations. Logistic regression allows estimating the association between an establishment’s design orientation and local contextual factors. A quantile instrumental variable regression allows assessing the robustness of the logistic regression results with respect to endogeneity. An estimate of design orientation at the local level derived from the survey is used to examine variation in economic performance during the period of recovery from the Great Recession (2010–2014). Results: Three distinct innovation (substantive, nominal, and non-innovators) and design orientations (design-integrated, “design last finish,” and no systematic approach to design) are identified. Innovation- and design-intensive establishments were identified in both rural and urban areas. Rural design-integrated establishments tended to locate in counties with more highly educated workforces and containing at least one performing arts organization. A quantile instrumental variable regression confirmed that the logistic regression result is robust to endogeneity concerns. Finally, rural areas characterized by design-integrated establishments experienced faster growth in wages relative to rural areas characterized by establishments using no systematic approach to design.

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  • Timothy R Wojan & Bonnie Nichols, 2018. "Design, innovation, and rural creative places: Are the arts the cherry on top, or the secret sauce?," PLOS ONE, Public Library of Science, vol. 13(2), pages 1-23, February.
    • Handle: RePEc:plo:pone00:0192962
    DOI: 10.1371/journal.pone.0192962
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    References listed on IDEAS

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    2. Josh Siepel & Roberto Camerani & Monica Masucci, 2021. "Skills combinations and firm performance," Small Business Economics, Springer, vol. 56(4), pages 1425-1447, April.
    3. Lily Kiminami & Shinichi Furuzawa & Akira Kiminami, 2023. "Role of creative classes in sustainable agricultural development: focusing on creating shared value in rural Japan," Asia-Pacific Journal of Regional Science, Springer, vol. 7(3), pages 903-934, September.
    4. Ieva Zemite & Ilona Kunda & Ilze Judrupa, 2022. "The Role of the Cultural and Creative Industries in Sustainable Development of Small Cities in Latvia," Sustainability, MDPI, vol. 14(15), pages 1-22, July.
    5. Kashyap, Pratyoosh & Jablonski, Becca B.R. & Bauman, Allison, 2022. "Exploring the Relationship between Stocks of Community Wealth and the Intensity of Farm to School Program Activities," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322167, Agricultural and Applied Economics Association.
    6. Zheng Tian & Timothy R. Wojan & Stephan J. Goetz, 2022. "An Examination of the Informational Value of Self-Reported Innovation Questions," Working Papers 22-46, Center for Economic Studies, U.S. Census Bureau.
    7. Goetz, Stephan J. & Han, Yicheol, 2020. "Latent innovation in local economies," Research Policy, Elsevier, vol. 49(2).

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