1. Kevin Stolarick Innovation in the Creative Age: Why Tapping Everyone’s Creative Potential is Vital

2. 2 1.The Rise of the Creative Class 2.Ontario in the Creative Age 3.Innovation across the Board 4.Benchmarking Ontario & Hamilton 5.Connectivity and the Mega-Region Brief Overview

3. 3 The Rise of the Creative Class

4. Understanding Economic Activity 4

5. Regional (Smith, Marshal) 5

6. Understanding Economic Activity Regional (Smith, Marshal) Industrial (Porter) 6

7. Understanding Economic Activity Regional (Smith, Marshal) Industrial (Porter) Education, Skills (Glaeser) 7

8. Understanding Economic Activity Regional (Smith, Marshal) Industrial (Porter) Education, Skills (Glaeser) Occupational (Florida) 8

9. Understanding Economic Activity Regional (Smith, Marshal) Industrial (Porter) Education, Skills (Glaeser) Occupational (Florida) BOTH 9

10. Knowledge to Creativity Knowledge “Human Capital” Education Levels Regional Stock Creativity Creative Capital Occupations Regional Flows 10

11. Why Occupations? Among all people who either work in the IT industry or work in an IT occupation (or both): – 50.2% work in an IT occupation but not in the IT industry – 25.7% work in the IT industry but aren't in an IT occupation – Only 24.1% work in an IT occupation in the IT industry IT Industry IT Occupations 11

12. What is it about Pittsburgh? 12

13. The “4Ts” Technology Regional Growth 13

14. The “4Ts” Talent Technology Regional Growth 14

15. The “4Ts” Talent Tolerance (Inclusiveness) Technology Regional Growth 15

16. The “4Ts” Talent Tolerance (Inclusiveness) Technology Territory Assets (Amenities) Regional Growth 16

17. The “4Ts” Talent Tolerance (Inclusiveness) Technology Territory Assets (Amenities) Regional Growth and Prosperity 17

18. What is the Creative Class? What You Do (Job Occupation) vs. Where You Work (Industry) 10 Year Job Growth Estimate Working Sector 10% Service Sector 14% Creative Sector 20% 18

19. Who Works in Creative Class? Creative Class: TAPE T = Technology and R&D Innovation A = Arts and Culture P = Professional and Managerial E = Educating and Training 19

20. U.S. Creative Class 30 (% of the workforce) 40 (million people) 50 (% of the wages) 70 (% of the discretionary income) 20

21. The Rise of the Creative Class 21

22. The Rise of the Creative Class Creative Service Working Farming 22

23. U.S. Creative Economy KnowledgeServiceWorking Workers (Talent)40,379,52059,769,27031,949,350 % of Workforce30.5%45.1%24.1% % of Wages48.8%30.4%20.6% 23

24. Who are the 40,000,000? OccupationsWorkersSalary ($B) T Computer and mathematical3,076,200213.0 Architecture and engineering2,430,250160.9 Life, physical, and social science1,231,07073.4 Healthcare practitioners and technical6,713,780416.5 A Arts, design, entertainment, and media1,727,38079.6 P Management5,892,900541.7 Business and financial operations5,826,140349.6 Legal976,74083.4 Sales and related occupations4,298,620147.7 E Education, training, and library occupations8,206,440371.9 Total40,379,5202,437.7 24

25. U.S. Creative Growth OccupationsGrowth (20042014) New Jobs (000; by 2014) T Computer and mathematical30.7%1,389 Architecture and engineering17.1%876 Life, physical, and social science16.4%531 Healthcare practitioners and technical25.8%3,047 A Arts, design, entertainment, and media14.9%851 P Management11.3%2,757 Business and financial operations19.1%2,163 Legal15.9%336 Sales and related occupations9.6%408 E Education, training, and library occupations20.0%3,558 25

26. Canada & Ontario’s Creative Economy CreativeServiceWorking Canada Workers (Talent) 4,874,8855,788,7673,333,726 % of Workforce 35.5%38.7%23.0% Ontario Workers (Talent) 2,027,1522,210,6041,311,995 % of Workforce 33.2%39.4%22.7% 26

27. 27 Share of creativity-oriented jobs is increasing

28. 28

29. -Creative jobs are more common in larger cities -Eastern Ontario somewhat higher mainly due to Ottawa Creative Ontario 29

30. 30

31. 31

32. 32

33. 33

34. Creative Jobs as a Percent of Total Employment 34

35. Service Class Jobs as a Percent of Total Employment 35

36. Working Class Jobs as a Percent of Total Employment 36

37. Agricultural Jobs as a Percent of Total Employment 37

38. 38 Ontario in the Creative Age

40. 2 Ontario Government asked Roger Martin and Richard Florida to… Undertake a study of the changing composition of Ontario’s economy and workforce Examine historical changes and projected future trends affecting Ontario Provide recommendations to the Province on how to ensure Ontario’s economy and people remain globally competitive and prosperous Ontario Budget, March 2008 40

41. This Work Was Completed by.... 41

42. Ontario’s distinctive advantage can be created through actions on four fronts 42

43. Harness the creative potential of Ontarians Increased creativity in all jobs Be the world’s first jurisdiction where creativity-oriented occupations account for half of all jobs Strengthen creativity skills through our education system Market Ontario as a creative province Make diversity a cornerstone of economic prosperity 43

44. 44 Share of creativity-oriented jobs is increasing

45. 45 New jobs will be in creativity-oriented and routine-oriented service occupations

46. Ontario has less creative content than US peers in 36 of 41 clustered industries 46

47. 47 Nearly 80 percent of jobs in Canada are in services industries

48. Unemployment is higher in routine-oriented occupations especially in early 90s recession -48

49. Broaden our talent base 49 Make Ontario the talent province Strengthen our managerial capacity

50. 50 Workers draw on three sets of skills

51. 51 Earnings rise with increases in occupations’ analytical skills

52. Earnings rise more with increases in occupations’ social intelligence skills 52

53. Earnings do not rise with increases in physical skills 53

54. Ontario under values increases in analytical and social intelligence skills 54

55. Clustered industries draw more on creativity-oriented occupations than dispersed industries 55

56. Creativity-oriented occupations in clustered industries generate highest earnings 56

57. Establish new social safety nets 57 Make early childhood development a high priority Invest in skills development for recent immigrants Consider wage insurance for longer tenure workers

58. Wage differences are much less prevalent in Ontario than in peer states 58

59. Returns to investment are highest for early childhood development 59

60. Build province-wide geographic advantage 60 Make the mega-region as strong as it can be Invest in connectivity

61. Ontario out performs US peers on Tolerance but under performs on Talent and Technology 61

62. Workers in creativity-oriented occupations are concentrated in small number of city regions 62

63. Harness the potential of the mega-region and connect the disconnected parts of Ontario 63

64. 64

65. 65 Innovation across the Board

66. InventionDevelopmentCommercialization Innovation Cycle (one of many) 66 Universities Govt Labs R&D Labs Garages Supply Family Friends Fools Angels VC Demand Design Manufacturing Marketing Consumers Real Product

67. SupplyDemand Innovation Success: Balanced 67

68. Innovation does not come from technology – Except in Terminator movies Innovation comes from talented, skilled people – In the “Creative Class” – Not the entire group People are mobile Success balances new and needed – “the new” – e.g., Apple – “the needed” - e.g., Medical Devices The Source of Innovation 68

69. Self-Employed 69

70. Getting to 50% Creative “Industry Agnostic” Creativity is not Industry-specific Service Class (low wage) – Increase value of work – Learning from –The Four Seasons –Best Buy –Toyota –Others Innovation for All 70

71. 71 Benchmarking Ontario & Hamilton

72. Benchmarking Ontario (and its Regions) 72

73. 73

74. Ontario 74

75. Technology “A high technology base is both a necessary condition for and a result of a region having a strong creative economy. Being known as a "high-tech" region helps to attract the creative workforce, which, in turn, generates new technologies making the region even more high-tech.” 75

76. Technology High Technology: – Concentration of high-tech companies – Growth of high-tech companies – Tech-Pole (North American) Innovation: – # of patented innovations per 1,000 people – Growth in patented innovations 76

77. Ontario 77

78. Talent “The concentration of people in the Creative and Super Creative Classes, has a stronger relationship with economic growth. Creative people don't just cluster where the jobs are. They cluster in places that are centers of creativity and also where they like to live. Places need a people climate -- or a creativity climate -- as well as a business climate.” 78

79. Talent Talent Index (Bachelors Degree and above) % Super Creative (scientists,engineers, artists, musicians, designers) % Knowledge Workers (super creative + professionals) Brain Drain/Gain Index (BDGI) 79

80. Ontario 80

81. 81

82. 82

83. 83

84. Tolerance / Inclusiveness “Diversity has become a politically charged buzzword. To some it is an ideal and rallying cry, to others a Trojan-horse concept that has brought us affirmative action and other liberal abominations. Creative Class people use the word often, but not to press any political hot buttons. Diversity is simply something they value in all its manifestations.” 84

85. Tolerance / Inclusiveness Mosaic Index (% foreign born) Gay/Lesbian Index (% gay & lesbian population) Boho Index (% culturally creative) % Visible Minority % Interracial Marriage Composite Diversity Index (CDI) 85

86. Ontario 86

87. Territory Assets “What Creative people look for in communities are abundant high- quality amenities and experiences, an openness to diversity of all kinds, and above all else the opportunity to validate their identities as creative people. Places are valued for authenticity and uniqueness … Authenticity comes from several aspects of a community … It comes from the mix … Authenticity is the opposite of generic.” 87

88. Territory Assets (Quality of Place) Economy/Growth Housing Culture Climate Education Healthcare Recreation Dis-amenities – Crime, Weather Transportation – Connectedness 88

89. Benchmarking Ontario’s 15 Metro Areas (CMAs) 89

90. Hamilton CMA 90

91. Technology “A high technology base is both a necessary condition for and a result of a region having a strong creative economy. Being known as a "high-tech" region helps to attract the creative workforce, which, in turn, generates new technologies making the region even more high-tech.” 91

92. 92

93. Talent “The concentration of people in the Creative and Super Creative Classes, has a stronger relationship with economic growth. Creative people don't just cluster where the jobs are. They cluster in places that are centers of creativity and also where they like to live. Places need a people climate -- or a creativity climate -- as well as a business climate.” 93

94. 94

95. 95

96. Tolerance / Inclusiveness “Diversity has become a politically charged buzzword. To some it is an ideal and rallying cry, to others a Trojan-horse concept that has brought us affirmative action and other liberal abominations. Creative Class people use the word often, but not to press any political hot buttons. Diversity is simply something they value in all its manifestations.” 96

97. 97

98. Creativity Index “The key to understanding the new economic geography of creativity and its effects on economic outcomes lies in the 3T's of economic development: Technology, Talent, and Tolerance. Each is a necessary but by itself an insufficient condition: To attract creative people, generate innovation and stimulate economic growth, a place must have all three. ” 98

99. Creativity Index Technology Tolerance (Inclusiveness) Talent 99

100. 100

101. 101 Connectivity & Mon-Tor-Loo (Tor-Buff-Chester)

102. “Urban” Policy Urban policy is not social policy. 102

103. “Urban” Policy Urban policy is not social policy. Urban policy is economic policy. 103

104. “I can see the cities...” 104

105. 105

106. Tor-Buff-Chester? 106

107. 107

108. 108

109. GGH Creative Class 109

110. 110

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112. 112

113. 113

114. Be Big Look Big Innovation & City Size (Santa Fe Institute) “Middle child” – Bos-Wash – Chi-Pitts Speed flow of – People – Products – Ideas Mega-Region & Connectivity 114

115. 115 1.The Rise of the Creative Class 2.Ontario in the Creative Age 3.Innovation across the Board 4.Benchmarking Ontario & Hamilton 5.Connectivity and the Mega-Region Review

116. Innovation Creative Age Tapping Everyone’s Creative Potential Is Vital Summary 116

117. Thank You Kevin Stolarick kms@rotman.utoronto.ca www.martinprosperity.org