The business of creativity

What thriving industry employs more workers than the computer software sector or communication services, and twice as many as the health care technology cluster? The answer: the "creative economy."

In hopes of promoting the North Shore as an enclave for arts and culture businesses, the Enterprise Center at Salem State College this month launched a creative economy incubator. Today, half of the 28 businesses housed at the center are members of the creative industry. The start-ups range from a marketing and advertising company to a drama coach and a handbag designer.

"There's not another place like this outside of Boston, a place where you can be in an environment with other creative people who are serious about their profession and about getting the training and education they need to be competitive and successful," said drama coach Carmel Harney of Marblehead, owner of MISCfit Studio, which recently expanded its services at the Enterprise Center to include executive coaching for corporate leaders who want to improve their speaking skills.

"I can meet with clients in a professional environment and be minutes from home. It's afforded me the opportunity to make a living, without having to go to Boston or New York."

In addition to those like Harney who are directly involved in the creation of art, in both commercial and nonprofit settings, the creative economy includes employees of cultural organizations, such as the Peabody Essex Museum in Salem, suppliers of related equipment and materials, educational institutions, and the media.

"The greatest challenge we face, as we try to grow this sector of the economy, is that very few areas of the country have tried to develop similar initiatives," said Christine B. Sullivan, executive director of the Enterprise Center. "The wheel has not yet been invented. As we move forward with this, we're looking at the creative economy as we would any other product. First, we are getting the word out about what the creative economy is, and then we're explaining why the region needs it, and needs to invest in it."

For the past several months, Sullivan -- together with Patricia Zaido, executive director of the Salem Partnership -- has been spearheading a regional effort to shape a new vision of the North Shore as a hotbed for artists and cultural industries.

The two serve as cochairwomen of a task force on the creative economy, a panel that strives to encourage investment in industries, such as film and design, in hopes of expanding the local creative economy. The panel also seeks to strengthen and expand the region's creative communities by showcasing them as one of the area's vital economic resources.

"We want to market this region as an attractive area for knowledge workers," said Zaido, noting that the panel already has identified 920 creative economy businesses operating in Boston's northern suburbs, from Lynn to the New Hampshire line. Of those, half are within a 3-mile radius of Salem.

The creative economy task force represents seven area communities: Beverly, Danvers, Lynn, Marblehead, Peabody, Salem, and Swampscott. Members of the task force include state Representative Steven M. Walsh, a Lynn Democrat, and Julie McConchie, executive director of the North of Boston Convention & Visitors Bureau.

"Having a strong arts community and a broad range of cultural offerings is of key importance to the area's economic future," said Gregory Liakos of Wakefield, spokesman for the Massachusetts Cultural Council. "As the cost of living in this region continues to climb, quality-of-life factors are becoming more and more critical to our competitiveness.

"For many professionals and highly skilled workers, the decision about where to live comes down to intangibles, to quality-of-life issues. Arts and culture are among the things that make one's quality of life better."

In addition to the intangible benefits, a thriving creative class offers rewards that can be measured in dollars and cents. Today, the arts and culture sector constitutes the fastest-growing segment of the New England economy, increasing at an annual rate of 1.1 percent, more than twice that of the overall New England economy, which posted gains of just 0.41 percent annually between 1997 and 2001, the latest year for which data is available.

The creative sector today supports more than 250,000 jobs in New England, including nearly 82,000 positions in Massachusetts, according to an employment study published in July by the New England Foundation for the Arts at the behest of the Creative Economy Council, a statewide association of key representatives from business, government, and the arts. In the region north of Boston, the creative economy contributes $1.25 billion to the local economy on an annual basis, Sullivan said, citing a recent study by the Lawrence Eagle-Tribune.

"A great example of the impact that a cultural institution can have on a community is the Peabody Essex Museum," Liakos said. "The museum's expansion project created hundreds of jobs, increased tourism, and boosted the confidence of the community. It's allowed Salem to re-imagine itself."

Sullivan noted that another major contributor to the vitality of the creative economy on the North Shore has been Montserrat College of Art, which moved to downtown Beverly 11 years ago.

Legislators on Beacon Hill and Governor Mitt Romney this year acknowledged the powerful role that the arts play in the health of the Massachusetts economy, and for the first time in two years increased funding for the Massachusetts Cultural Council, which had a deep budget cut in fiscal 2003. That year, state support of the council fell 62 percent, from $19 million to $7.3 million. Today, state funding is at $8.3 million; $1 million of that has been earmarked for the John and Abigail Adams Arts Program.

The Enterprise Center, together with other members of the local creative economy task force, plans to seek the support of the Adams arts program. The panel is hoping to secure a $75,000 state grant to form a local creative economy council, provide training and education to creative entrepreneurs, and market the region as a mecca for the creative class.

"Through the Enterprise Center, I've had the opportunity to meet with and learn from other small business owners," said Rich Chadwick, president of MultiMediaPros. The company helps other small- to mid-size businesses take advantage of technology to roll out their products and market their services. "Although our businesses are often very different, we share common concerns about outsourcing, funding, and finances. It would be great if we could somehow expand our reach, and get more people involved."

Brenda J. Buote may be reached at bbuote@globe.com