#1>> CULTURE, CREATIVE SECTORS AND LOCAL DEVELOPMENT IN EMILIA ROMAGNA: EMERGING FINDINGS FROM OECD REVIEW Ekaterina Travkina, Coordinator, Culture, Creative Industries and Local Development Fabrizio Montanari, Associate Professor, Università degli studi di Modena e Reggio Emilia 1 December 2021 OECD BETTER POLICIES FOR BETTER LIVES#2Culture, Creative Sectors and Local Development OECD strives to support governments to: Mainstream culture beyond cultural policies and as an integral part of wider policy agendas, such as employment, social cohesion, innovation, well-being, the environment and sustainable local development. Adapt policies on employment, social protection, innovation and entrepreneurship to the needs of CCS. Improve internationally comparable statistics and the evidence base on the scale, scope and impacts of CCS. Build the capacity of national and local governments to integrate culture into broader economic and social development strategies. Report Firms Cultural participation/ museums Co-funded by the Creative Europe Programme of the European Union Jobs Funding & investment#3Culture, Creative Sectors and Local Development in Emilia Romagna: In a snapshot Vibrant creative economy Growing steadily before the crisis Strong, diverse and accessible cultural offer across the region Strong and growing demand for cultural goods and services Robust policies Long tradition of cultural policies From cultural policies to culture-led development strategies Culture mainstreamed across other policies Strong focus on cultural welfare and inclusion through culture Innovation: Regional Smart Specialization Strategy Diversified financial support: public, philanthropy and private What next Bringing CCS funding strategy to the next level: region as "orchestrator" of public, private and philanthropy funding ☞ Consolidating cultural welfare policies ☞ Consolidating the role of museums as cultural hubs for local development Further adapting employment and business support measures to address the precariousness of CCS employment, gender and digital gaps#4Cultural employment grew faster than overall employment on average over the past decade Emilia Romagna CCS bounced back better and grew faster than the overall economy after the 2008 economic crisis. CCS employment increased by 4.9% from 2008 to 2019, outperforming the rest of the overall regional economy for the same period (+0.5%). Growth uneven across CCS. . Artistic handicraft Media↓ • Cultural, artistic, % 35 90 30 25 20 15 10 сл 5 0 -5 Cultural and total employment growth rate, 2011 to 2019, OECD Cultural employment ◇ Total employment Finland Montenegro United States North Macedonia Greece Spain Portugal Slovak Republic Iceland Korea United Kingdom Slovenia Belgium Lithuania Netherlands Hungary Bulgaria Austria Romania Sweden OECD Ireland Switzerland Estonia Poland Czech Republic France Italy Germany Latvia Denmark Turkey Luxembourg entertainment activities ↑ Creative services ↑ -10 Norway#5Cultural workers were much likely to be self-employed than on average, 2018 33% of cultural workers were self-employed compared to 14% on average across the EU Italy has one of the highest shares of self-employed cultural workers (46%) Emilia Romagna: 34% television programming and broadcasting activities (74%), . architecture and engineering (66%) % 50 45 40 35 30 30 25 20 15 10 5 0 Netherlands Italy Czech Republic Greece United Kingdom Cultural employment Share of self-employed workers in cultural employment and total employment, 2020 or latest available data Spain Portugal Slovak Republic Canada France Turkey Ireland OECD-29 Belgium Finland Switzerland Germany Malta Austria Hungary Iceland Sweden Poland Serbia Slovenia Lithuania Montenegro Latvia Norway United States > Total employment Bulgaria Estonia Denmark Luxembourg Croatia Romania North Macedonia#6Women are underrepresented in cultural employment in Emilia Romagna Share of women in cultural employment and in total employment, 2018 In EU 27 the share of women employed in CCS is slightly higher than in total employment EU average: 47% vs 46% Italy: 42.7% of women in cultural employment vs 46% in total employment Emilia Romagna: Women represent 36% of cultural workers 70 60 50 40 30 20 220 10 EU-28 Latvia_ Lithuania_ Estonia_ Bulgaria Finland Luxembourg Poland Hungary_ Denmark_ Source: Eurostat, 2018 Тиәрәмс Czechia_ Croatia_ Romania Cyprus_ Slovakia_ France_ Malta_ Germany Slovenia Ireland Greece Belgium_ Italy_ Austria_ Portugal Netherlands United Kingdom_ Spain_ Iceland Switzerland Norway_ Montenegro_ North Macedonia_ Cultural employment Total employment Turkey_ Serbia#7Cultural and creative sectors are among the most affected by the current crisis Venue based sectors most affected (performing arts, live music, festivals, cinema, etc.) Workers in the performing arts have endured the greatest decrease of working hours among CCS in the third trimester of 2020 (-14.9% of working hours, only behind the tourist sector). More market-driven sub-sectors (design, advertising or fashion) have managed to better absorb the impact of the crisis#8Employers' demand for creative professionals dropped during the pandemic and has not been restored (March 2021) In Italy, as in many other OECD countries, the number of job postings for cultural and creative professionals has dropped in spring 2020 compared to the same period in 2019 and had not picked up to pre- crisis levels as of March 2021. 0 2 4 6. 10 12 14 do 16 Apr-19 Apr-20 Campania Sicily Sardinia Lazio Apulia Calabria Molise Tuscany Umbria Italy Abruzzo Lombardy Basilicata Marche Liguria Veneto Province of Trento Piedmont Province of Bolzano-Bozen Mar-21 Emilia-Romagna Friuli-Venezia Giulia Aosta Valley#99 • CCS employment and entrepreneurship: policy options Collaborate with national government to further improve access of free- lancers and self-employed to social benefits. Provide support to small-scale, innovative start-ups direct financial support to innovative start-ups, Support cultural and creative spaces Cross-sectorial links with other sectors ☞ Sustain forms of participatory governance of CCS Consolidate regional funding aimed at improving digital skills of creative professionals and cultural institutions * Enhance entrepreneurial learning in arts and humanities faculties and business start up support#10Cultural participation: Household spending on recreation and culture Household spending on recreation and culture across Italian regions, % Household spending on recreation and culture in Emilia Romagna is one of the highest in Italy and above OECD average but decreasing since 2011 5 4 3 2 Piedmont T co 6 7 L Emilia-Romagna Province of Trento Lombardia Umbria Trentino Alto Adige / Südtirol 2018 ◊ 2011 Veneto Marche Friuli-Venezia Giulia Sardinia Province of Bolzano-Bozen Italy Tuscany Lazio Calabria Molise Basilicata Abruzzo Puglia Source: Final Consumption Expenditure of Households, ISTAT Liguria Aosta Valley Campania Sicily#11Cultural participation The demand for cultural goods, services and experiences is high in the region. Emilia Romagna is one of the most vibrant Italian regions in terms of population access to cultural amenities and cultural participation (attendance) rates. Access to cultural amenities and creative spaces is uniform across the region. Importance of independent cultural and creative spaces. (art hubs, cultural centers, and co-working spaces) - a distinctive trait of the region's cultural supply model. Strong policy focus on cultural welfare and inclusion through culture. Emilia Romagna film festivals Cultural welfare: Theatres and well-being#12Cultural participation: Policy considerations ☞ Further mainstream culture across policies: Broaden the scope of the policy rationale for public spending to develop cultural participation where it has notable positive benefits: health and well-being, societal changes, research and innovation, environment and climate, education, etc. Consolidating cultural welfare policies Develop cultural well-being guidelines at both the urban and regional levels, as part of a societal strategy to improve resilience and people's well-being, in order to mobilize local stakeholders to facilitate and support social change; Launch cultural well-being education programs in schools and universities to enhance the resilience of young people, ☞ Involve, encourage, and support artists and cultural institutions to consider their activities in terms of promotion of health and well-being, and their projects as part of the regional cultural welfare system.#13Maximising the impact of museums on local development MIC International Museum of Ceramic in Faenza Themes Supporting local economic development Fostering urban regeneration and community development Catalyzing culturally aware and creative societies Promoting social inclusion, health, and wellbeing Sets of activities Workshops and outreach initiatives with research institutions, universities, and companies to foster new business ideas, employability skills and funding opportunities Definition of a coworking space and acceleration programs for craftsmen and entrepreneurs in the ceramics field Support to the internationalization of Faenza's ceramics craftsmanship and entrepreneurship (e.g., CER-DEE) Preservation and promotion of Faenza's open-air ceramics production Preservation and promotion of MIC's permanent ceramics collections Guest-curated exhibitions, competitions, and dissemination activities for the local community and tourists Workshops, laboratories and courses for Faenza's middle and high school students Attraction of creative talent through partnerships with other museums and cultural institutions (e.g., the Faenza Prize) Digitalization of MIC's cultural and educational offering during the COVID-19 pandemic (e.g., webinars for students, blended activities for families) Workshops for students with disabilities Professionalizing activities for younger people, and life-learning activities for ageing populations Promote Theme 5 Mainstream the role of museums in local development museums as spaces for inclusion, health and well-being Theme 4 Theme 1 Leverage the power of museums for local economic development Theme 3 Catalyse culturally aware and creative societies Theme 2 Build on the role of museums for urban regeneration and community development#14Maximising the impact of museums on local development MAMBO - Museum of Modern Art of Bologna Themes Supporting local economic development Fostering urban regeneration and community development Catalyzing culturally aware and creative societies Promoting social inclusion, health, and wellbeing Sets of activities Workshops and outreach initiatives with research institutions, universities, and companies to foster new business ideas and employability skills Partnerships with local cultural institutions, companies, and cultural associations (e.g., sponsorship and funding programs, exhibitions within the Art City Bolognal project, cultural events) Preservation and promotion of Giorgio Morandi's artworks through the Morandi Museum and commemoration of the Ustica events through the Museum for the Memory of Ustica Preservation and promotion of MAMbo's permanent modern and contemporary art collections Guest-curated exhibitions, festivals, and public debates for the local community and tourists Workshops, laboratories and courses for local middle and high school students (e.g., through personalized teaching "kits" for schools) Workshops and internships for university students Definition of a hub for artistic production, artistic residency, curatorship, and acceleration programs for young artists (i.e., Nuovo Forno del Pane project) Workshops for children attending kindergartens and their families Professionalizing activities for younger people, and life-learning activities for ageing populations Definition of 'remote' cultural fruition initiatives to ease social distancing pitfalls in terms of social inclusion and well-being (e.g., 'remote' exhibitions)#1515 Maximising the impact of museums on local development: action options for museums Legacy Actualization Design activities to update the material and immaterial heritage that is expressed by their collection; Engage new audiences also as means to mobilize new partnerships and funding channels with local stakeholders; Develop artistic and cultural projects to favour the involvement of local communities Ecosystem Embeddedness Design activities to 'socialize' museums functions and impacts; Organize activities and events that promote cooperation, pooling of resources and co-planning of new projects with local stakeholders; Strengthen ties with local community (e.g. mobilization of volunteers, projects to be co-designed with the third sector) Capacity Building: Invest in educational activities aimed at integrating traditional and new competences of museum staff (e.g., management of online platforms for cultural participation and artistic production); Contribute to enhancing creativity, wellbeing, and participation in local community, to sustain new cultural ventures.#1616 . Maximising the impact of museums on local development: policy options for local governments Develop a longer-term vision though multi-stakeholder collaborations Strengthen museums' links with universities Stimulate the participation and inclusion of new audiences Scale-up museums' capacities Couple financial support with other forms of public support Address the digitalisation needs of the sector#17Crowdfunding CCS access to funding – mix of funding Self- finance • Personal resources Retained profit Public support measures . . Grants Tax incentives Voucher schemes ⚫ Loans Micro-credit • Invoice finance ⚫ leasing • Debt finance • Overdraft L Equity finance ⚫ Business Angels • Venture Capital Risk mitigation schemes, insurances Source: adapted from OMC (2016), Towards more efficient financial ecosystems, European Union ⚫ Philanthropy/Donation • ⚫ Sponsorship Other • Patronage#18Public and private funding for CCS While the shares of national public spending has decreased over 2011-2018, regional public support has considerably increased. N wo Recreation, culture and religion as a share of local government spending across Italy 2011 Source: Final Consumption Expenditure of General Government, ISTAT Sicily Province of Trento Friuli-Venezia Giulia Trentino Alto Adige / Südtirol Tuscany Emilia-Romagna Veneto 2018 Lombardia Marche Province of Bolzano-Bozen Italy Liguria Sardinia Piedmont Lazio Umbria Puglia Campania Basilicata Aosta Valley Abruzzo Molise Calabria#19Public and private funding for CCS Regional authorities have devised a wide range of actions to improve CCS access to funding. CCS as part of Regional Smart Specialization Strategy Regional Cluster CREATE Digitalisation/theatres The support is also channeled to specific sectors to increase international competitiveness as well as impacts on local development and to support the sectors through the current crisis. Laboratori Aperti Regional Law on Cinema, 2014 National tax exemption measures have strong impact#20Private and philanthropy funding for CCS Bank Foundations' support to CCS has been growing over the past years. The amount of interventions reflects the relative investments that every city has made in the CCS and often strategically complements such investments. Civic crowdfunding and the Porticoes of Bologna: "Un passo per San Luca❞ campaign National tax exemption schemes to promote charitable donations to CCS have significant impact in Emilia Romagna. Public-Private partnerships have been growing. Art Bonus#21Public and private funding for CCS: Policy options • Public sector as 'orchestrator' + regulation • Further ease access to finance of market oriented CCS: - - Identify barriers to access debt and equity finance by market-oriented CCS (e.g. weak managerial skills, or the lack of awareness of lending institutions and reluctance to provide lending without tangible collaterals); Design measures and instruments to address these barriers (e.g. awareness raising campaigns; managerial skills trainings; third-party guarantee have been proven to be efficient in reducing the financial risk of CCS with respect to banks). Streamline regulatory obligations for cultural firms and professionals to access funding Ease access to crowdfunding by providing enabling technological and financial environment as well as by addressing skills gaps Design incentives to stimulate demand in CCS, which has collapsed during the pandemic putting the activities of several actors in CCSS at risk; Support citizen initiatives (volunteer organizations, community associations, non-profit organizations, etc.) in the realm of CCS.