Cultural Return: Toward a Preliminary Framework (Javier J. Hernandez Acosta)
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This document proposes a preliminary framework for analyzing the "cultural return" of cultural organizations, or the net benefits they provide beyond financial measures. It identifies several types of cultural returns, including entrepreneurial, policy, diversity, cultural clustering, participation, and educational effects. The framework is applied through surveys and interviews to three cultural organizations in Puerto Rico. Summary tables and graphs are used to analyze the cultural returns provided by each organization to both supply and demand sides of the cultural sector. The document concludes that models accounting for both economic and cultural value are needed to better understand the full impact of cultural activity.
Cultural Return: Toward a Preliminary Framework (Javier J. Hernandez Acosta)
- 1. CULTURAL RETURN: TOWARD A PRELIMINARY FRAMEWORK Javier J. Hern叩ndez Acosta, MBA International Conference on Cultural Economics Kyoto, Japan June 21-24, 2012
- 2. INTRODUCTION There is a need to understand the impact of arts and culture at the micro level. There is a need of a better balance between economic and cultural indicators. It is important to describe, understand and establish, not only to measure. Cultural return could be a parallel analysis to financial return.
- 3. RESEARCH OBJECTIVES To develop a preliminary framework for the concept of cultural return as an analysis that describes the effects of cultural organizations into the cultural sector. The concept is expressed as the net benefits of cultural organizations that are not included in the financial statements.
- 4. METHODOLOGY Literature review on social analysis for businesses, performance of cultural organizations and spillovers in the cultural and creative industries. Development of an analysis model based on the experiences of three cultural organizations in Puerto Rico. Surveys and interviews with employees, collaborators and customers of these three organizations regarding the positive effects of the organizations (47 questionnaires).
- 5. LITERATURE REVIEW Cultural Value (Throsby, 2001, Holden, 2004, King, 2003, Klamer, 2002) Accountability and Social Analysis (May, 2011, Shedler, 1999, Gallego, 1999) Performance evaluation in cultural organizations (Peacock, 2003, FEMP, 2009, AECD, 2009, L坦pez, 2002, Porter, 1990, Chiaravalloti &Piber, 2011, Sawhill & Williamson, 2001) Externalities (spillovers) (DCMS, 2007, Benegas, 1998, Throsby, 2001, Hagoort, 2003)
- 6. Effect Impact Description Entrepreneurial Effect Supply Effects of cultural organizations on the development of other cultural projects. The effect is expressed in terms of projects developed by members, collaborators, sponsors or competitors. This includes developing job skills and experience, and interaction with other industries. Policy Effect Supply Effect of a cultural organization on issues traditionally associated with cultural policy, such as subsidies and access to the arts. This net benefit does not result from the main cultural activity but from management practices that allows an efficient allocation of resources. Diversity Effect Supply, Demand Effect of cultural organizations on the content and context of artistic activity. It can be expressed in terms of aesthetical, historical and artistic terms, and as cross-generational, folkloric and traditional expressions and openness to innovation. Similarly, diversity arises as a demand effect when audiences have access to a diverse offer or through a diverse audience composition. Cultural Clustering and Cultural Life Supply, Demand Phenomenon by which a project influences the development of cultural spaces and a climate of cultural life. It describes the agglomeration of cultural activity and its relation to the participation of citizens. Participation Effect Demand This effect describes the impact of cultural organizations in promoting citizens participation in the arts. It refers mainly to the extent that promotes access for segments of the population that traditionally do not attend for different reasons. Overall, it describes the scope and diversity in the audiences composition. Educational Effect Demand Direct impact of the project in terms of educational activities related to the arts. This type of events, despite not being the main activity of the company, has direct effects on participation and enjoyment of the arts. CULTURAL RETURN ANALYSIS MODEL (SUMMARY TABLE)
- 8. Effect Policy approach (FEMP, 2009) Competitiveness (Porter, 1990) Value Chain (L坦pez, 2003) Cultural Track (Hagoort, 2003) Entrepreneurial Effect Social, economic and territorial development Innovation and Memoir Firm Strategy, Structure and Cooperation Related and Supporting Industries Creation Production Distribution Cultural innovation, Artistic Leadership, Artistic and creative processes Policy Effect Access, Participation Local Culture Factor conditions Creation Production Conservation Historic analysis, Cultural credit, Diversity Effect Innovation and Memoir Access Participation Local Culture Firm Strategy, Structure and Cooperation Demand conditions Creation Production Consumption Multicultural context Cultural innovation, Artistic and creative processes Cultural Clustering / Cultural Life Social, economic and territorial development Innovation and Memoir Local Culture Related and Supporting Industries Factor conditions Creation Production Distribution Consumption Cultural Innovation, Common Interest, Artistic and creative process Participation Effect Participation Demand conditions Consumption Common Interest Educational Effect Access Participation Factor conditions Demand conditions Training Consumption Common Interest CULTURAL RETURN LINKS WITH THEORETICAL APPROACHES
- 9. CULTURAL ORGANIZATIONS CASE STUDY Taller C辿 Cultural cooperative that operate from 2001 to 20010. Members were singer-songwriters who invest and receive dividends according to their work. Operated a Theater that produced over 1,000 events from independent artists. The Cooperative produced seven compilations. Teatro Breve A theater company that produces a new comedy event two times a week. The company employs aprox. 8 actors and a production crew of 10 people. Cambio en Clave A project that offer Salsa dance lessons to general population. It has impact over 10,000 people, coordinate Salsa events, a promote performances with local artists.
- 10. ANALYSIS TALLER C (SUPPLY) Summary Table 3. Taller C辿 Cultural Return Analysis Supply Side Supply Effect Impact Indicators Policy Effect Transferring of labor subsidies to artists through the reduction of production costs. 1. Analysis of production costs for artists and theater policies. 2. Admission rights income generated by artists. Entrepreneurial Effect Facilitating the creation of cultural projects through their services. 1. Musical recordings and performances. 2. Arts projects developed during the period. 3. Other venues opened during the period. Cultural Clustering / Cultural Life Contribution in the revitalization of R鱈o Piedras and its cultural life. 1. Business developed in the area after the Cooperative. 2. Collaborative events produced. 3. Interdisciplinary cultural events produced. Diversity Effect (Supply) Openness to diversity in the cultural offering through exhibition and performance policies. 1. Qualitative events analysis by genre, sector, etc. 2. Qualitative analysis of special events. 3. Analysis of events with international artists.
- 11. ANALYSIS TALLER C (DEMAND) Summary Table 4. Taller C辿 Cultural Return Analysis Demand Side Demand Effect Impact Indicators Diversity Effect (Demand) Audience segmentation, strengthen niche markets and developing new segments. 1. Analysis of the cultural offering. 2. Artists and producers opinion on events and audiences. 3. Demographic profile of the audience. Educational Effect Impact on youth segments through music lessons. Professional education to artists through workshops on management and performance. 1. Attendance data of students and workshops 2. Analysis of educational events produced by other entities. Participation Effect Access and active participation for different audience segments in the cultural activity. 1. Analysis of audiences opinion 2. Analysis of the artistic offer.
- 12. TALLER C SUMMARY GRAPH
- 13. TEATRO BREVE SUMMARY GRAPH
- 14. CAMBIO EN CLAVE SUMMARY GRAPH
- 15. CONCLUSIONS Performance analysis model should be able to adapt to the realities and differences between sectors and activities. Governments should develop models to balance the analysis between economic and cultural value. Artists-entrepreneurs and cultural organizations should use models to understand the net benefits of their cultural activity. It is easier for organizations to understand their impact on the cultural sector with cultural indicators. Cultural Return should be an integral part of strategic planning in cultural organizations.