The creative slice of economic pie

Elegant, dark and strapless, the custom silk gown made for physician Carol Henwood could symbolize what some now call Philadelphia's creative economy.

Today, Innovation Philadelphia, a city-funded economic-development agency, is expected to announce its findings about the $58.9 billion creative sector, a healthy slice of the region's $264.8 billion economy.

The creative economy incorporates Henwood's $3,000 ball gown, developed by Pottstown fashion designer Toi Sweeney, along with such diverse sectors as software development, advertising, movie production and architecture.

"You can fill all of your creative outlets here," said Sweeney, 34.

By day, Sweeney hires models for the QVC Inc. shopping network. The producers, directors and set designers at QVC's studios are all part of the creative economy.

During her off-hours, she works to build up her fledgling luxury design and dressmaking company, HMTQ, Her Majesty the Queen.

The models Sweeney hires for QVC are also part of the creative economy - an economy that generates employment for 766,000, or 306,000 directly and an additional 460,000 through an indirect ripple effect.

That means that nearly one in 10 of the three million employed in the region is already directly involved in the creative economy, the report said, citing 2005 statistics.

"You can get your education here. You can work here. So why not?" Sweeney asked.

The creative economy, the report said, includes all the people in creative industries - for example, a secretary in an architectural studio.

It also includes all the people in creative occupations, even if they do not work in creative industries. So, an artist who designs brochures for a financial company would be part of the creative sector.

Innovation Philadelphia wants business leaders to pay as much attention to the creative economy as they do to the life-science businesses in pharmacy and biotechnology.

"We've always looked at our nonprofit arts-and-culture community, but this type of measurement has been done on the for-profit side," said Kelly Lee, who heads Innovation Philadelphia. "Now that we know how large and important it is, we can start to promote this industry sector."

The study compares Philadelphia with six other regions that have been looking to boost their creative economies.

Of the six - Austin, Texas; Boston; Seattle; Tampa, Fla.; Phoenix; and Denver - Philadelphia's creative-economy employment is second only to Boston's, but the sector is growing faster in Philadelphia than it is in Boston.

Particularly strong is employment in digital media, the study said.

Of the 11 counties included in the study, Montgomery County has the highest number of people employed in creative industries - 62,000 out of a workforce of 544,700. Philadelphia is second with 52,000 out of a 633,400, according to 2005 U.S. Census statistics.

Among the group's expected recommendations: The region should work with organizations representing minority- and female-owned businesses; brand the city as a hub of creative enterprise; collaborate with entrepreneurship groups; and create financial-incentive programs to attract creative-economy businesses and to fund entrepreneurs.

That would suit Toi Sweeney. She would like to see programs similar to Pottstown's mortgage assistance for homeowners be extended to people who might like to open a storefront.

"Commercially, that would be great," she said.

Meanwhile, she contributed to the creative economy herself by paying $500 to a Philadelphia pattern-maker and seamstress for work on Henwood's dress.

It is not surprising that the Creative Economy report also includes a recommendation that there be a "designated institutional driver" to promote the economy.

Whether Innovation Philadelphia will survive long enough to take on that role remains to be seen. Founded in 2001, the group had been a favorite of former Mayor John Street and had, at one point, been headed by his longtime top adviser George Burrell.

Burrell earned $225,000 a year until he stepped down in September. Lee earns $165,000 a year.

Funding for the organization had been cut, but in June, City Council restored a $2.5 million appropriation.

"We are actively reviewing Innovation Philadelphia and all other economic-development initiatives," said Duane Bumb, the city's acting commerce director.

"Innovation Philadelphia does lots of good things," Bumb said. "We are cognizant of the fact that they have programs we need to protect." But, he said, considering that the program focuses on regional development, it needs to attract more regional funding.

Total:

$58.9 billion yearly

Direct: $25.1 billion

Indirect: $33.8 billion

Employment:

766,000

Direct: 306,000

Indirect: 460,000

Wages:

Average pay: $61,600

Highest: $74,600

(software developer)

Lowest: $23,400

(photographer)

Self-employed:

36,500 with 13,800 in graphic, visual-arts and multimedia design.

Tax revenue:

$1.22 billion (state, local)

Economic figures for 2005 in 11 counties: Philadelphia, Montgomery, Bucks, Chester, Delaware, Mercer, Burlington, Camden, Gloucester, Salem, and New Castle.

SOURCES: Econsult Corp., Innovation Philadelphia