Arts and culture are important to state economies. Arts and culture-related industries, also known as “creative industries,” provide direct economic benefits to states and communities: They create jobs, attract investments, generate tax revenues, and stimulate local economies through tourism and consumer purchases. These industries also provide an array of other benefits, such as infusing other industries with creative insight for their products and services and preparing workers to participate in the contemporary workforce. In addition, because they enhance quality of life, the arts and culture are an important complement to community development, enriching local amenities and attracting young professionals to an area.

Governors increasingly recognize the importance of the creative sector to their states’ economy and ability to compete in the global marketplace. A number of factors underscore the connection between economic competitiveness and creativity. For example:

• Creative and new media industries are growing in number and playing increasingly • prominent economic and social roles;
• Companies’ decisions about where to locate their businesses often are influenced by factors such as the ready availability of a creative workforce and the quality of life available to employees;
• Arts and culture can play a major role in community development and redevelopment by creating new jobs as well as fostering an environment and amenities that attract talented young workers; and
• Tourism centered on arts and culture can contribute to state and local economic growth by providing a diversified and sustainable means for creating jobs and attracting revenue.

This report outlines steps governors can take to incorporate arts and culture into state economic development plans and policies.