State Investments in Culture Can Spur Economic Development

State investments in cultural programs can spur urban and rural economic development, tourism, and revenue generation. In its analysis of state cultural program decisions, the Cultural Policy Working Group of the National Conference of State Legislatures concludes that state investments in the arts help develop creative industries and offer a competitive advantage to states focused on business attraction and retention.

Paul Kalomiris
Economic and Technology Policy Studies NGA Center for Best Practices

In terms of revenue generation, the report points to research in Denver, Colorado, New England, and Texas to illustrate the impact on the city, regional, and state economies. Rural communities benefit from cultural investments because of the significant inventory of historical assets present in these areas. One town in Oklahoma, for example, was designated a National Historic Landmark and has evolved into a cultural and historic center.

Culture attracts tourists, who have made tourism the nation’s third largest retail sales industry. The report notes that historic preservation also plays a role in urban revitalization as well. Urban areas in need of revitalization have seen public interest sparked by a cultural infrastructure of performing arts centers and museums, which give people reasons to visit cities.

Center for Arts and Culture: http://www.culturalpolicy.org/index.cfm

For the Full report: http://www.culturalpolicy.org/pdf/investinginculture.pdf

http://www.nga.org/center/frontAndCenter/1,1188,C_FRONT_CENTER%5ED_5402,00.html