As nations, states, and cities reinvent themselves for an evolving economic landscape, embracing creativity and innovation is no longer a choice — it’s a necessity.
Recently, however, we’ve witnessed unsettling developments: mass resignations from the Kennedy Center board of trustees, the dissolution of the President’s Committee on the Arts and the Humanities, the National Foundation for the Arts and Humanities cutting its grants to underserved communities, and the Art Museum of the Americas canceling exhibitions they had funded to promote diversity.
James Carville, a long-time political strategist, famously advised presidential candidates, “It’s the economy, stupid.” Today, however, that advice has a modern update: “It’s the creative economy, stupid.”
Many cities and states are already paving the way to a new creative economy because they recognize that harnessing the power of imagination, innovation, and culture is a critical driver for growth, jobs, and overall well-being.
A thriving creative community exists at the intersection of art, culture, and commerce. It requires significant investment in both human and financial resources to equip citizens with the necessary skills and mindset for navigating an increasingly knowledge-driven world. A vibrant creative ecosystem does more than stimulate economic activity — it creates cultural spaces that attract and retain the talent needed to foster innovation.
San Diego, for example, is launching a new initiative to build a creative community. Backers of the effort aspire to leverage their city’s rich traditions, diverse ecologies, and creative capital to drive prosperity and create a more equitable region.
Former San Francisco Mayor Ed Lee spoke to this at the City Innovate Summit, stating: “Cities today are the engines of the greatest surge in innovation, creativity, and problem-solving in human history. Cities that think of themselves as platforms will become stronger, attract better talent, and become smarter from the bottom up.”
In today’s economy, success is no longer about industrial output or financial markets — innovation is now the driving force. But to fuel innovation, we need creativity.
John Howkins, author of The Creative Economy, argued that anyone with a great idea can create wealth. He describes creative industries as those related to advertising, architecture, design, filmmaking, writing, painting, and other artistic pursuits. Meanwhile, Richard Florida, in his book The Rise of the Creative Class, expands the definition to include professionals in fields like business, finance, law, and healthcare — individuals who depend on complex problem-solving, independent thinking, and advanced education.
Even in 2025, we are still grappling with fully defining and embracing the shift in the global economy. Creativity — simply put, the ability to invent or develop something original — has become the most valuable skill in the workforce. Global leaders, including former President Obama, have acknowledged that a new economic and social order is emerging — one that demands we rethink and reinvent our communities, businesses, schools, and governments to keep up with rapid change.
The reality is clear: the tectonic plates of the world’s economy have shifted. Rebuilding a city — whether it’s housing, infrastructure, education, or energy systems — is a monumental task. But creating a knowledge-based or creative community is equally complex. To succeed in the creative economy, we must rethink urban design, education, and community engagement.
One solution? Art and culture districts.
Theresa Cameron, former local arts agency services program manager at Americans for the Arts, has argued that districts filled with art galleries, theaters, music venues, public performance spaces, restaurants, cafés, and retail shops can serve as incubators for creativity and magnets for talent. These dynamic environments foster the kind of innovation cities need to remain competitive in the modern economy.
Cities must act to:
- Empower citizens to take ownership of their communities.
- Build world-class broadband infrastructure to support digital and creative industries.
- Revamp education systems to prepare the next generation for careers in the creative economy.
These elements are crucial for attracting the inventive minds who will generate new patents, design cutting-edge products, and create the marketing and financial strategies necessary to bring them to market. Embracing the creative economy isn’t just about nurturing a thriving arts scene — it’s about securing America’s economic, social, and political preeminence in the 21st century. Innovation and creativity are the engines behind new industries, transformative technologies, and the jobs of tomorrow.
The message is clear: If we fail to adapt, we risk being left behind. But if we embrace creativity, we can build a future defined not by stagnation, but by boundless possibilities.
John Eger is a professor emeritus in the School of Journalism and Media Studies at San Diego State University. Previously, he served as legal assistant to FCC Chairman Dean Burch, telecommunications advisor to President Gerald R. Ford, and senior vice president of CBS Worldwide Enterprises.
