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Authors:
Dr. Zoltan Acs, McCurdy Distinguished Professor of Entrepreneurship at the
Merrick School of Business, University of Baltimore
Monika Megyesi, graduate student at the University of Baltimore
Research Assistant:
Annabel Acs, undergraduate student at Boston University
Graphic Design:
Brandy Zhang, graduate student at the University of Baltimore
Inquiries regarding this publication can be directed to:
Richard Clinch
Program Director
Jacob France Institute
University of Baltimore
1420 N. Charles St.
Baltimore, MD 21201
410-837-4988
[email protected]
This report was made possible through partial support from the Office of the Provost,
University of Baltimore.
The authors are extending their special thanks to the Merrick School of Business and many other individuals
who actively contributed to the creation and promotion of
Seeding the Vision: Creative Baltimore.
Introduction
The concept of creative class, as a plausible paradigm
unique aspects of traditionally industrial regions. Industrial
for contemporary economic growth, awakened significant
regions have had a difficult time emerging as creative hubs.
interest among academics and the civic leadership community.
Nevertheless, among metropolitan areas with populations of
1
In his book, The Rise of the Creative Class , Richard Florida
one million or more, Baltimore ranks 17th in percentage of
correlates a region’s economic development with its share of
Creative Class population and is the first industrial city to
creative talent, tolerance towards diversity, capacity to invent
begin a turnaround.
or improve technology, and richness of public amenities.
In a nutshell, amenity-rich communities with a high
While Baltimore does well when compared to its
peer cities, it does exceptionally well when combined as
degree of diversity attract young, educated, and creative
part of the Washington—Baltimore megalopolis. In a sense,
people who contribute directly to economic growth. Members
then, part of Baltimore’s true strength and potential lays in
of the creative class—including scientists, engineers, archi-
its proximity to Washington, DC. This unique positioning
tects, designers, educators, artists, musicians, entertainers,
provides Baltimore with a competitive advantage, since
etc.—stimulate a region’s economy by introducing new ideas,
Washington, DC is a truly modern, creative and high-tech
new technology, and new creative content. Knowledge and
epicenter.
professional workers who engage in complex problem solving
As an integrated part of the greater Washington
that involves a great deal of independent judgment also belong
metro, in the overall Creativity Index, Baltimore helps
to this category.
outrank the three largest consolidated metropolitan areas
In total, the creative sector of the American economy
(CMSAs): New York-Northern New Jersey-Long Island,
employs more than 30% of the workforce and accounts for
Los Angeles-Riverside-Orange County, and Chicago-Gary-
nearly 50% of all wages and salaries earned in the U.S. This
Kenosha (Table 1). The Washington-Baltimore Megalopolis
ratio becomes increasingly important considering that lack of
is also nationally ranked No. 1 on its percentage of creative
diversity, tolerance, and a knowledge-based economy leads to
talent in the region. The tremendous importance of this
an out-migration of creative people, or brain-drain, to other
ranking is understood as Baltimore’s immediate access to
regions.
the most significant economic force of our age: creativity.
Creativity, as a major economic force, changes
An analysis similar to this report2 but focusing on
the way companies, cities and countries compete. Across
Arlington County, VA, was published by Arlington Economic
the U.S., creative metropolises have begun basing their
Development (AED) in January of 2005. It claims that
economic development strategies, at least partly, on building
Arlington, despite its commonly perceived suburban profile,
communities attractive to the creative class worker.
fares well on several creativity measures, and is already
There are countless examples of such transformations
a “diverse and inclusive world-class urban community,”
among high-tech regions from Silicon Valley to Seattle to
attracting top talent from the Washington, DC region.
Boston’s Route 128 area, and so on.
Baltimore has an even greater potential to attract creative
What has received less attention is how traditional
talent, thanks to its greater openness to diversity3, a more
industrial cities in the old industrial parallelogram – bordered
established technology base, and more appealing territorial
by Green Bay, WI; St. Louis, MO; Baltimore, MD; and
amenities.
Portland, ME – have fared as creative centers. Baltimore, as
a southeast anchor of this parallelogram, incorporates many
This research seeds a daring vision for Creative
Baltimore: to be the first industrial metropolis establishing
1
Table 1
Creativity Index Ranking Within Size for Benchmarked CMSAs
(Rank Ordered List by the Creativity Measure)
Target Statistical Area
Washington--Baltimore, DC--MD--VA--WV CMSA
New York--Northern New Jersey--Long Island, NY--NJ--CT--PA CMSA
Los Angeles--Riverside--Orange County, CA CMSA
Chicago--Gary--Kenosha, IL--IN--WI CMSA
Within Size
Creativity
Rank
8
13
18
23
Within Size
Technology
Rank
15
23
19
29
Within Size
Talent Rank
1
10
31
18
Within Size
Tolerance
Rank
16
14
10
30
Source: Kevin Stolarick, PhD - Carnegie Mellon University
Attracting Creative Talent
itself as an inclusive, diverse, and creative economy. This
Human creativity, the driving force in modern
report also intends to educate community and civic authorities
urban development and economic growth, is a consequence
on the viability of this vision, and to mobilize them towards its
of nurturing and stimulating environments. Talented
implementation. Baltimore, more than any other city in the
people are highly mobile and attracted to regions that
region, has the opportunity to capitalize on the regional and
offer not only economic opportunities, but also amenities
global creative economy.
for a variety of lifestyles. Key to understanding the new
The feasibility of this claim is demonstrated in
economic geography of creativity and its effects on
the following pages, starting with a short description of the
economic outcomes are the 3Ts of economic development:
theory on creativity. An analysis of Baltimore’s performance
Talent: or creative share of the workforce, based largely
on dimensions of Talent, Tolerance, Technology, and
on demographic, educational, and occupational
Territory follows. This report analyses Baltimore both as
characteristics.
a metropolitan area generally and as a counterpart to other
Tolerance: or diversity, based on indexes related to
traditional industrial cities. It concludes with a short summary
immigration, integration, sexual orientation and
of findings.
bohemian culture.
Technology: or innovation, measured by patent activity
and the high technology share of the economic base.
Each T is a necessary—but by itself insufficient—condition
to attract creative people, develop the creativity of the in-
NOTE:
1. Florida, Richard, The Rise of the Creative Class. Basis Books, New
York, NY. 2002. All references to the “Creative Class” are derived from
this text unless otherwise noted.
2. The report titled “Benchmarking the Creative Class in Arlington,
VA” (by Terry Holzheimer and Lauren Hodgin) is available on the Arlington Economic Development website at http://
www.arlingtonvirginiausa.com/docs/creativeclass.pdf.
3. The Arlington report measures diversity purely based on the region’s
share of foreign-born population. It does not consider measures like the
Gay Index and Bohemian Index.
digenous population base, generate innovation, and stimulate economic growth. Richard Florida combines the 3 T’s
into a Creativity Index, in order to rank the creative potential of metropolitan regions. Additionally, this report expands on a fourth T—Territory—to account for Baltimore’s
rich territorial and communal amenities. Based on relevance and availability of data, the 3 T’s (Talent, Tolerance,
Technology) and the 4 T’s (Talent, Tolerance, Technology,
Territory) are used interchangeably, as context dictates.
2
Table 2 Index Ranking for All
Creativity
Statistical Areas
Creativity Index Ranking for All Statistical Areas
(Rank Ordered List by Creativity Index)
Target Statistical Area
Creativity Index
Talent Index
Tolerance Index
Technology Index
Austin TX
0.991
0.956
0.790
0.848
San Francisco CA
0.988
0.957
0.939
0.844
San Jose CA
0.985
0.990
0.863
0.896
0.809
Raleigh-Durham NC
0.982
0.976
0.646
Seattle WA
0.979
0.956
0.789
0.808
Oakland CA
0.976
0.920
0.900
0.795
Boston MA-NH
0.970
0.967
0.671
0.677
Sacramento CA
0.967
0.802
0.778
0.703
Washington DC-MD-VA-WV
0.964
0.986
0.824
0.694
Atlanta GA
0.961
0.824
0.720
0.743
Portland OR-WA
0.955
0.838
0.714
0.829
Dallas TX
0.946
0.849
0.793
0.765
San Diego CA
0.940
0.820
0.839
0.778
New York NY
0.927
0.886
0.866
0.545
Phoenix AZ
0.909
0.659
0.739
0.779
Minneapolis MN-WI
0.906
0.890
0.613
0.676
Baltimore MD
0.903
0.874
0.671
0.497
Los Angeles CA
0.888
0.727
0.902
0.484
San Antonio TX
0.870
0.621
0.634
0.708
Philadelphia NJ-PA
0.867
0.812
0.595
0.619
Denver CO
0.861
0.887
0.763
0.557
Chicago IL
0.855
0.811
0.724
0.616
Talent Index
0.874
0.812
0.811
0.716
0.701
0.589
0.655
0.725
Tolerance Index
0.671
0.595
0.724
0.408
0.525
0.436
0.242
0.534
Technology Index
0.497
0.619
0.616
0.533
0.450
0.465
0.589
0.350
Source: Kevin Stolarick, PhD - Carnegie Mellon University
Kevin Stolarick, PhD Information Systems Program
Porter Hall 100A
Carnegie Mellon Software Center
Table 3
Creativity Index Ranking for Benchmarked Statistical Areas
(Rank Ordered List by Creativity Index)
Target Statistical Area
Creativity Index
Baltimore MD
0.903
Philadelphia NJ-PA
0.867
Chicago IL
0.855
St. Louis IL-MO
0.698
Milwaukee WI
0.559
Cleveland OH
0.498
Pittsburgh PA
0.438
Detroit MI
0.272
Source: Kevin Stolarick, PhD - Carnegie Mellon University
3
Methodology
The Creativity Index and the 3 T Indexes are
This report analyzes the extent to which the
ranked on a scale from 0 to 1 to provide consistent basis for
Baltimore Metropolitan Statistical Area (Baltimore MSA),
comparison among analogous regions based on population
in the State of Maryland, represents an environment that
statistics. Table 2 specifies the creative performance of the
attracts and stimulates creativity on the dimensions of 4
top metropolitan areas with a population of 1 million or
Ts: Talent, Tolerance, Technology, and Territory.
more. The top five creative regions are Austin, TX; San
Measures of the Talent dimension include data
Francisco, CA; San Jose, CA; Raleigh-Durham, NC; and
from the U.S. Census Bureau on population 25-34 years of
Seattle, WA. Baltimore joins this group of creative regions
th
in the top 10 percentile of the Creative Index. It ranks 17
th
age, educational levels of population 25+, migration of
population aged 5+ to the region, information on foreign
on the national list, with an overall Creativity Index of
born population, and data on occupations considered
0.903.
creative.
The region performs even better in the context of
Data on the Gay Index and Bohemian Index was
peer cities of the old industrial parallelogram. On a list of
provided by Dr. Kevin Stolarick of Carnegie Mellon
seven comparable metropolises, Baltimore ranks first,
University, who has done extensive statistical research in
showing unique potential in becoming the prototype of
various measures of creativity. These two indexes give an
an industrial region that successfully adapts into an open,
insight in the analyzed regions’ Tolerance dimension.
inclusive, and diverse economy (Table 3). While Baltimore
Aptitude in Technology will be shown by data on
is at the forefront measured both by the Creativity and
utility patents granted by the U.S. Patent and Trademark
Talent Indexes, it is outperformed only by Chicago on the
Office.
Tolerance Index. The Technology Index places Philadelphia
Finally, the dimension of Territory will be
in the lead and Baltimore in fifth place among the
described with focus on the Wage Inequality Index and
benchmarked regions.
Housing Inaffordability Index provided by Dr. Stolarick,
The 3 T’s explain why cities like St. Louis and
Pittsburgh fail to grow despite their deep reservoirs of
and data on housing costs from the U.S. Census Bureau.
The 4 T dimensions of the Baltimore MSA
technology and world-class universities. They have not
are studied both independently and as compared to seven
been sufficiently tolerant and open to attract, retain, and
similar industrial regions. The Baltimore MSA incorporates
organically grow top creative talent. The interdependence
Anne Arundel County, Baltimore City, Baltimore County,
of the 3 T’s also explains why cities like Miami and New
Carroll County, Hartford County, Howard County, and
Orleans do not make the grade even though they are lifestyle
Queen Anne’s County (Graph 1).
and tolerance meccas: they lack the required technology
The benchmarked Metropolitan Statistical Areas
base. The most successful places – such as the San
(MSAs) and Primary Metropolitan Statistical Areas
Francisco Bay area, Boston, Austin, and Seattle – put all 3
(PMSAs) are: Chicago, IL; Cleveland, OH; Detroit, MI;
T’s together. They are truly creative places.
Milwaukee, WI; Philadelphia, PA; Pittsburgh, PA; and St.
Louis, MO. These regions were selected because they
inhabit the traditional industrial parallelogram and are in
important structural and economic ways comparable to
Baltimore.
4
Graph 1
Baltimore MSA:
Anne Arundel County, Baltimore City, Baltimore County, Carroll County,
Hartford County, Howard County, and Queen Anne’s County
Talent Dimension
The statistical correlation between the Talent Index
Nationally, the size of this cohort has been shrinking over
and creative class centers are among the strongest of any
the past decade. With the exception of Chicago, industrial
variables in the analysis. The Talent Index considers a region’s
urban areas are loosing their young adult population; this
population aged 25-35, education levels, migration, and
translates into a creative brain-drain. Cleveland experiences
creative occupations. Baltimore, ranked first among peer cities,
considerably less brain drain than its peers. While Baltimore
outperforms its benchmarks with a higher talent rank for the
ranks last on this category, the picture significantly improves
percent of its population that is a part of the creative class
at the county level. Howard and Anne Arundel counties—
(Table 4).
located geographically to the South, between Baltimore and
Washington, DC—lost less young population than the rest of
Population 25-35
the MSA (Table 5). Loss of young creative adults encumbers
Baltimore’s progress towards a creative economy, though the
When it comes to converting human creativity
region’s proximity to Washington, DC, provides a ready talent
into economic output, the individuals aged 25-34 play a
resource that can augment this demographic – so long as
particularly crucial role. Representing the majority of today’s
Baltimore takes measures to attract this talent.
creative class, this group is also the peak of its mobility, and
therefore a crucial leading indicator of revealed locational
decisions.
5
Table 4
Talent Index Ranking for Benchmarked Statistical Areas
(Rank Ordered List)
Target Statistical Area
Baltimore MD
Philadelphia NJ-PA
Chicago IL
Detroit MI
St. Louis IL-MO
Milwaukee WI
Pittsburgh PA
Cleveland OH
Talent Index
0.874
0.812
0.811
0.725
0.716
0.701
0.655
0.589
Source: Kevin Stolarick, PhD - Carnegie Mellon University
Table 5
Population Aged 25-34
(Rank Ordered List by Percent Change)
Change 1990-2000
Target Statistical Area
2000
Number
Percent
1,280,225
143,847
13%
Cleveland, OH PMSA
295,069
-12,443
-4%
Pittsburgh, PA PMSA
284,780
-41,583
-13%
Detroit, MI PMSA
644,314
-123,458
-16%
Milwaukee, WI PMSA
205,841
-48,381
-19%
Philadelphia, PA--NJ PMSA
686,005
-162,936
-19%
St. Louis, MO--IL MSA
345,294
-84,502
-20%
Baltimore, MD MSA
352,427
Howard County
36,519
Anne Arundel County
72,235
Harford County
28,685
Carroll County
17,896
Queen Anne's County
4,724
Baltimore County
101,340
Baltimore City
93,248
Source: American FactFinder - U.S. Census Bureau
-91,977
-2,717
-7,824
-5,301
-3,354
-981
-23,276
-44,633
-21%
-7%
-10%
-16%
-16%
-17%
-19%
-32%
Chicago, IL PMSA
6
Education Levels
Educational levels are highly correlated with
At the county level, 58% of the population has a bachelor’s
creativity, innovation, and economic growth. Baltimore
degree or above in areas north of Baltimore City (Carroll and
ranks fourth of the benchmarked MSAs, while education
Hartford Counties).
levels within the counties forming the Baltimore MSA are
even higher (Table 6).
Table 6
Population Aged 25+ with a Bachelor's Degree or Higher
(Rank Ordered List by Percent Change)
Change 1990-2000
Target Statistical Area
Chicago, IL PMSA
Cleveland, OH PMSA
2000
Number
1,586,055
631,110
Percent
66%
350,620
108,834
45%
Pittsburgh, PA PMSA
391,691
114,657
41%
Baltimore, MD MSA
493,842
15,786
25,564
4,606
62,371
48,210
92,487
43,746
132,064
5,793
9,347
1,607
18,894
14,287
21,562
3,665
37%
58%
58%
54%
43%
42%
30%
9%
Carroll County
Harford County
Queen Anne's County
Anne Arundel County
Howard County
Baltimore County
Baltimore City
Milwaukee, WI PMSA
260,981
66,598
34%
Detroit, MI PMSA
661,889
164,428
33%
St. Louis, MO--IL MSA
428,849
102,532
31%
Philadelphia, PA--NJ PMSA
932,498
210,499
29%
Source: American FactFinder - U.S. Census Bureau
Migration
The mobility of the creative class contributes to the
Comparable to domestic migration, Baltimore
social and economic rise or fall of urban regions. Migration
receives a considerable share of international talent, even if
happens at the domestic, as well as international, level.
less than other industrial areas (Table 8). At the county level,
Geographic relocation is probably the fastest way a region can
Baltimore fares even better with impressive results in Howard
gain or lose creative workers. Although other industrial regions
County, laying South of Baltimore City.
enjoy a considerably higher percentage of inward mobility,
While immigration is important to regional growth, it
Baltimore shows a 6% gain of creative population through
is less important for innovation. Innovation is a measure best
domestic migration (Table 7). This figure is expected to
described by diversity indexes (and detailed later in this paper).
increase significantly as creative talent is driven from the
Places that are open to immigration do not necessarily number
Washington, DC due to housing inaffordability.
among the leading creative class centers, though a region’s
Nationwide, approximately 40% of total population
growth is the result of international immigration.
openness to foreign populations is a solid leading indicator
of its overall tolerance to new people and ideas.
7
Table 7
Migration of Population Aged 5+ to Benchmarked Statistical Area
(Rank Ordered List by Percent Change)
Change 1990-2000
Target Statistical Area
2000
Number
Percent
Chicago, IL PMSA
820,247
233,365
40%
Cleveland, OH PMSA
183,719
31,511
21%
Detroit, MI PMSA
361,116
49,320
16%
Pittsburgh, PA PMSA
171,262
22,647
15%
Milwaukee, WI PMSA
155,498
11,385
8%
Baltimore, MD MSA
307,220
13,778
5,952
59,479
66,995
52,348
85,086
23,582
17,090
2,049
851
6,290
5,735
2,305
2,766
-2,906
6%
17%
17%
12%
9%
5%
3%
-11%
477,595
26,264
6%
St. Louis, MO--IL MSA
251,309
Source: American FactFinder - U.S. Census Bureau
11,891
5%
Carroll County
Queen Anne's County
Baltimore City
Baltimore County
Howard County
Anne Arundel County
Harford County
Philadelphia, PA--NJ PMSA
Table 8
Foreign Born Population
(Rank Ordered List by Percent Change)
Change 1990-2000
Target Statistical Area
2000
Number
Percent
145,532
89,600
160%
St. Louis, MO--IL MSA
41,073
25,021
156%
Milwaukee, WI PMSA
37,044
21,809
143%
122%
Detroit, MI PMSA
Cleveland, OH PMSA
40,630
22,319
Pittsburgh, PA PMSA
24,938
12,755
105%
639,887
325,505
104%
61,275
28,113
972
3,046
23,211
53,784
7,364
29,638
30,634
16,746
498
1,491
9,944
21,281
2,344
6,171
100%
147%
105%
96%
75%
65%
47%
26%
145,971
60,236
70%
Chicago, IL PMSA
Baltimore, MD MSA
Howard County
Queen Anne's County
Carroll County
Anne Arundel County
Baltimore County
Harford County
Baltimore City
Philadelphia, PA--NJ PMSA
Source: American FactFinder - U.S. Census Bureau
8
Creative Occupations
The creative class, as defined by Richard Florida, con-
high-tech, financial, legal, health, and business management
sists of the Super-Creative Core and Creative Professionals. The
sectors. These professionals engage in creative problem solving
4
Super-Creative Core includes occupations like: scientists, writers,
that typically requires a high degree of formal education. In the
artists, educators, architects, engineers, athletes, entertainers, etc.
benchmarked industrial areas, Baltimore’s super-creative core
They add economic value to the region directly through their
and creative professional occupations show tremendous increase.
5
creative works. Creative Professionals hold occupations in
The city ranks fourth, with impressive results at the county level
knowledge-intensive industries, such as the
(Table 9).
Table 9
Creative Class Occupations
(Rank Ordered List by Percent Change)
Change 1990-2000
Target Statistical Area
2000
Number
Percent
3,034,880
1,907,431
169%
Cleveland, OH PMSA
797,622
479,935
151%
Pittsburgh, PA PMSA
860,316
500,473
139%
Baltimore, MD MSA
1,085,823
160,244
62,562
16,119
91,669
211,545
332,903
210,781
605,048
101,607
39,092
10,036
55,276
121,580
185,977
91,480
126%
173%
167%
165%
152%
135%
127%
77%
2,014,021
1,110,070
123%
585,560
322,558
123%
976,952
527,075
117%
1,519,267
788,855
108%
Chicago, IL PMSA
Howard County
Carroll County
Queen Ann's County
Harford County,
Anne Arundel County
Baltimore County
Baltimore City
Philadelphia, PA--NJ PMSA
Milwaukee, WI PMSA
St. Louis, MO--IL MSA
Detroit, MI PMSA
Source: American FactFinder - U.S. Census Bureau
Tolerance Dimension
Tolerance is a complex set of relationships
NOTE:
4. Baltimore’s Super-Creative Core occupations are concentrated in the
following industries: Information; Educational Services; and Arts, Entertainment, & Recreation. More information on occupations categorized
under these industries can be found at http://www.naics.com/naics26page.htm#11.
5. Creative Professional occupations in Baltimore are available primarily
in the following industries: Finance & Insurance; Professional, Scientific,
& Technical Services; Management of Companies & Enterprises; and
Health Care & Social Assistance. More information on occupations
categorized under these industries can be found at http://
www.naics.com/naics2-6page.htm#11.
that explain how people work and live together to create
innovations that stimulate growth through technology and
talent. Among the benchmarked MSAs, Baltimore ranks
second on the overall tolerance index (Table 10). Creative
people are attracted to places that score high on the Gay Index
and the Bohemian Index, the main components of the overall
Tolerance Index.
One important measure of a region’s openness
to diversity is its tolerance towards individuals’ sexual
orientation. The Gay Index ranks a region based on this
openness, and is a good measure of diversity in part because
9
gays have been subject to discrimination from many sectors of
A region that does not organize artistic events fails to
society.
provide stimuli that attract both the artists themselves and
The Gay Index is a very strong predictor of a region’s
creative class workers more generally.
high-tech industry concentration. This does not indicate a
Richard Florida makes a distinction between
correlation between high-tech professionals and their sexual
smaller-scale street-level amenities and the traditional
orientation. It simply means that areas tolerant of lifestyle
big-ticket attractions such as professional sports, museums
diversity are favored by the creative class worker. Among
the symphony, opera, etc. Baltimore is blessed with several
benchmarked MSAs, Baltimore is the most open (Table 11).
such attractions—i.e. the Orioles Stadium and Baltimore
th
On the other hand, Baltimore ranks only 6 on the
Symphony Orchestra—yet Florida found little evidence that
Bohemian Index, just before Pittsburgh and Cleveland (Table
big-ticket arenas and events are effective at attracting talented
12). The Bohemian Index takes into account the including
people and generating high-tech industries. Cultural amenities
the Baltimore extent to which the region fosters artists,
appealing to the creative class include vibrant street life,
performers, musicians, etc. and their lifestyles. In a recent
readily available outdoor recreation, and a cutting-edge
national listing of musical and entertainment events by state,
music scene. These vital amenities have been neglected in
Maryland—MSA—had absolutely nothing scheduled.
Baltimore, which gives rise to serious concern.
Table 10
Tolerance Index Ranking for Benchmarked Statistical Areas
(Rank Ordered List)
Target Statistical Area
Chicago IL
Baltimore MD
Philadelphia NJ-PA
Detroit MI
Milwaukee WI
Cleveland OH
St. Louis IL-MO
Pittsburgh PA
Tolerance Index
0.724
0.671
0.595
0.534
0.525
0.436
0.408
0.242
Source: Kevin Stolarick, PhD - Carnegie Mellon University
Table 11
Gay Index For Bechmarked Statistical Areas
(Rank Ordered List)
Target Statistical Area
Baltimore MD
1.02
Chicago IL
0.98
Philadelphia NJ-PA
0.96
Milwaukee WI
0.75
Cleveland OH
0.74
St. Louis IL-MO
0.72
Detroit MI
0.69
Pittsburgh PA
0.64
Source: Kevin Stolarick, PhD - Carnegie Mellon University
10
Gay Index
Table 12
Bohemian Index For Bechmarked Statistical Areas
(Rank Ordered List)
Target Statistical Area
Bohemian Index
Chicago IL
1.14
Detroit MI
1.10
Milwaukee WI
1.08
Philadelphia NJ-PA
1.00
St. Louis IL-MO
0.98
Baltimore MD
0.91
Pittsburgh PA
0.88
Cleveland OH
0.87
Source: Kevin Stolarick, PhD - Carnegie Mellon University
Technology Dimension
The Technology dimension is quantified by the
metropolitan regions on the overall Technology Index
Technology and Innovation Indexes. Both innovation and
(Table 13). However, the Innovation Index—measured
high-tech industry are strongly associated with the locational
by utility patent outputs—ranks Baltimore as first among
decisions of the creative class, and of talented individuals in
benchmarked metropolitan areas (Table 14). Patents translate
general. Fifteen of the top twenty high-tech regions also rank
the society’s underlying creativity and innovation into
among the top twenty creative class centers, as do fourteen
economic outcomes. At the county level, Queen Anne’s
of the top twenty regions on the Innovation Index. Though
County shows greater than expected results, with 250%
Baltimore is located in close proximity to the I-270
patent grant increase from 1990 to 2000.
Technology Corridor, it ranks only fifth among peer
Table 13
Technology Index Ranking for Benchmarked Statistical Areas
(Rank Ordered List)
Target Statistical Area
Philadelphia NJ-PA
Chicago IL
Pittsburgh PA
St. Louis IL-MO
Baltimore MD
Cleveland OH
Milwaukee WI
Detroit MI
Technology Index
0.619
0.616
0.589
0.533
0.497
0.465
0.450
0.350
Source: Kevin Stolarick, PhD - Carnegie Mellon University
11
Table 14
Utility Patents by Benchmarked Statistical Area
(Rank Ordered List by Percent Change)
Change 1990-1999
Target Statistical Area
Baltimore, MD PMSA
Queen Anne's County
Harford County
Carroll County
Howard County
Baltimore City
Baltimore County
Anne Arundel County
St. Louis, MO-IL MSA
Philadelphia, PA-NJ PMSA
1999
Number
Percent
664
14
64
44
152
142
164
84
295
10
39
25
74
63
70
14
80%
250%
156%
132%
95%
80%
74%
20%
743
307
70%
1,849
636
52%
Detroit, MI PMSA
1,964
622
46%
Chicago, IL PMSA
2,929
843
40%
Cleveland, OH PMSA
786
181
30%
Milwaukee, WI PMSA
530
119
29%
Pittsburgh, PA MSA
809
68
9%
Source: US Patent and Trademark Office
Territory Dimension
From a territorial perspective, Baltimore is truly rich.
affordable housing is highlighted by Richard Florida in his
Its variety of territorial amenities is a major selling point for
second book, The Flight of the Creative Class. To express
the region – from winning sports teams to the uniqueness of
this dimension statistically, Dr. Kevin Stolarick of Carnegie
Fells Point to a wealth of green spaces, parks, and trails.
Mellon University compiled the Wage Inequality and
It is the home of the railroad, Fort McHenry, the Naval
Housing Inaffordability Index. The Wage Inequality Index
Academy, the Inner Harbor, and the Chesapeake Bay.
shows a population’s tendency to earn considerably above
The Baltimore waterfront presents the region with further
or below average salary. Interestingly, there is a strong
opportunity to improve its territorial assets and to create an
correlation between inequality and creativity: more creative
open, inclusive, and diverse community through a working
regions show more prominent income inequality. Baltimore
harbor designed for both work and leisure. The city has
ranked first on the Wage Inequality scale, meaning that the
an impressive urban fabric connecting universities, water,
income divide is great in the region (Table 16). While a good
excellent transportation, and affordable housing. The
number of people earn above average income, a considerable
latter category, translating into housing costs, affects the
segment of the population earns below average salaries.
attractiveness of a community, especially for young adults
12
fared surprisingly well once more. The importance of
The latter segment may be the reason why
at the beginning of their careers and peak of their mobility.
Baltimore ranks only sixth on housing costs (Table 15)
When assessing the number of households spending less
and fourth on housing inaffordability table (Table 17).
than 35% of their income on housing costs (including:
The Housing Inaffordability Index is calculated using total
renters, owners with mortgage, and owners without
housing costs, categorized by housing types (rental, owned,
mortgage) at the MSA level, Baltimore’s share increased –
mortgage, no mortgage, etc.) and weighed by the number of
but not at the rate this phenomenon occurred in similar
people in each type. This index is significantly and
industrial cities (Table 15). At the county level, Baltimore
negatively correlated with total population.
Table 15
Households Paying Less than 35% of Income for Housing
(Rank Ordered List by Percent Change)
Change 1990-2000
Target Statistical Area
Chicago, IL PMSA
Cleveland, OH PMSA
2000
Number
1,927,092
481,543
Percent
33%
629,102
116,895
23%
Pittsburgh, PA MSA
683,302
93,641
16%
Milwaukee, WI PMSA
417,831
38,339
10%
St. Louis, MO--IL MSA
736,290
64,880
10%
Baltimore, MD PMSA
Howard County
Harford County
Carroll County
Queen Anne's County
Anne Arundel County
Baltimore County
Baltimore City
694,902
69,333
59,791
40,409
10,326
136,411
228,171
171,891
47,051
17,942
13,763
9,207
2,152
24,126
19,556
-18,265
7%
35%
30%
30%
26%
21%
9%
-10%
Detroit, MI PMSA
1,222,496
73,890
6%
Philadelphia, PA--NJ PMSA
1,331,992
75,650
6%
Source: American FactFinder - U.S. Census Bureau
Table 16
Wage Inequality Index Ranking for Benchmarked Statistical Areas
(Rank Ordered List)
Target Statistical Area
Within Size Ranking
Baltimore MD
17
Philadelphia NJ-PA
30
Pittsburgh PA
33
Chicago IL
36
Detroit MI
40
Cleveland OH
45
Milwaukee WI
47
St. Louis IL-MO
52
Source: The Flight of the Creative Class, by Richard Florida
Table 17
Housing Inafordability Index Ranking for Benchmarked Statistical
Areas
(Rank Ordered List)
Target Statistical Area
Within Size Ranking
Chicago IL
26
Philadelphia NJ-PA
28
Cleveland OH
38
Baltimore MD
45
Milwaukee WI
46
Pittsburgh PA
53
Detroit MI
57
St. Louis IL-MO
60
Source: The Flight of the Creative Class, by Richard Florida
13
Conclusion
While there are many examples of high-tech regions
becoming creative (Silicon Valley, Seattle, Boston Route 128),
and has an impressive number of biotechnology companies
what is needed now is a model for creative economy
compared to the national average. The region’s strengths
transformation for traditional industrial cities. Baltimore,
include its potential for technological innovation through
more than any other city in the industrial parallelogram region,
utility patents (Graph 5). Nevertheless, Baltimore needs to
has the opportunity to become that model, by growing,
find ways to tap into Washington, DC’s creative labor pool,
nurturing, and capitalizing upon its creative economy.
as well as leverage talent from the reserve provided by its
This unique opportunity is provided in part by the
region’s proximity to Washington, DC, and by its high ranking
on dimensions of talent, tolerance, and technology. The
th
own remarkable universities, in order to further improve in
this dimension overall (Graph 2).
On the Territory dimension, the Baltimore MSA
Baltimore MSA ranks 17 in the creativity index among
has much to offer: access to the Atlantic Ocean through the
all U.S. cities of over 1 million inhabitants—just after
Chesapeake Bay, four state parks in Baltimore County,
Minneapolis and before even Los Angeles (Table 2)—and
historic towns, and vibrant ethnic neighborhoods. Housing
first on the Creativity Index among benchmarked metropolitan
costs in the region became more affordable to an additional
areas (Table 3). Baltimore also ranks favorably in overall
7% of population over the past decade, with an even greater
measures of 3Ts when compared to Philadelphia, Chicago,
impact at the county level. The region shows capacity
St. Louis Milwaukee, Cleveland, Pittsburgh, and Detroit
to attract creativity with a low housing inaffordability
(Graph 2).
measure (Graph 6). Baltimore’s Wage Inequality Index
Along individual measurements of the 4 T’s,
suggests strong presence of the creative class, but housing
Baltimore shows both strengths and weaknesses. The region
affordability could be increased to attract even more
fares relatively well in its population’s educational levels and
talented young professionals to the area.
concentration of creative occupations in the region (Graph 3).
Ultimately, Baltimore is well positioned to take off in
Nevertheless, on both these categories, there’s room for
the global creative economy, especially given its tradition-
improvement. On the Talent dimension, Baltimore’s greatest
ally industrial profile. Its proximity to Washington, DC—
weakness is its declining 25-34-year-old population. Also, the
a truly modern and creative high-tech nucleus—and its
current rate of inward migration does not bode as well as it
access to the largest reservoir of creative talent in the nation
could in terms of attracting creative talent.
provide grounds for this region to pioneer an unprecedented
The region shows capacity to nurture creativity with
economic turnaround. Baltimore owns resources and can
high overall tolerance levels, ranking second among peer cities
develop further capabilities to pull creative talent from the
(Graph 2). The Tolerance dimension is strong in Baltimore’s
District of Columbia and Virginia. To do that, though,
profile, with a high ranking on the Gay Index (Graph 4).
civic and community leadership must come together to
Its performance is less strong on the Bohemian Index. The
actively seek and implement a strategic plan aimed at
Baltimore region, and Maryland in general, fails to adequately
harnessing this potential. The intent of this report is to
invest resources in its arts and entertainment scene.
organize such leadership, encourage such strategic
The region is an established leader in technological
innovation, and has shown great signs of success in the
Technology dimension. Nevertheless, there is always room for
14
growth. Baltimore ranks high in creative high-tech indexes
planning, and therefore seed the roots of a bold yet viable
vision: Creative Baltimore.
Best
Average
Worst
Graph 2
Overall Creativity and 3T Ranking
Among Benchmarked Statistical
Areas
6
Creativity Index
Talent Dimension
Tolerance Dimension
Technology Dimension
Best
Average
Worst
Graph 3
Individual Talent Measures for
Baltimore Among Benchmarked
Statistical Areas
BALTIMORE
MSA
Population 25-34
Education Level
Migration—Domestic
Migration—Foreign Born
Creative Occupations
Best
Average
Worst
Graph 4
Individual Tolerance Measures for
Baltimore Among Benchmarked
Statistical Areas
TALENT
Bohemian Index
Gay Index
Best
Average
Worst
Graph 5
Individual Technology Measures for
Baltimore Among Benchmarked
Statistical Areas
TOLERANCE
Technology Index
Innovation Index
Wage Inequality
Housing Inafordability
Housing Costs
Best
Average
Worst
Graph 6
Individual Territory Measures for
Baltimore Among Benchmarked
Statistical Areas
TECHNOLOGY
TERRITORY
NOTE:
6. This visual representation of the data was inspired by Dr. Kevin
Stolarick of Carnegie Mellon University.
15
This is a publication of:
The Jacob France Institute, University of Baltimore
1420 N. Charles Street
Baltimore, Maryland 21201-5779
www.ubalt.edu/jfi
Telephone: 410.837.4727
Fax: 410.837.5814
In collaboration with:
The Merrick School of Business
1420 N. Charles Street
Baltimore, Maryland 21201-5779
www.ubalt.edu/merrick
Telephone: 410.837.4955
Fax: 410.837.5652