Planning Stage

	Literature Review The Arts: A Competitive Advantage for California Date 1994, October Purpose of Study The purpose of the study was to establish a clear and descriptive picture of the impact of the nonprofit arts sector on California's economy. Methodology The study has two components: 1) an economic impact study focused on the nonprofit arts sector, and the audiences of those arts organizations, and 2) five unique case studies – two case studies look at the relationship between the arts sector and commercial arts sector, one case study measures the economic and social impact of arts festivals, and the other case study focuses on Los Angeles county artists. Results The nonprofit arts sector generated $2.159 billion in economic activity. The nonprofit arts sector generated 115,153 jobs. Seven arts festivals yielded approximately $11 million in economic activity for every $1 spent. The average income of people working in the arts in Los Angeles county is $38,000 a year. Assessments The economic impact study was limited to the nonprofit arts sector, and the audiences of those organizations. The executive summary is not a cohesive summary of the study, but fragmented, which does not provide the reader with a clearer understanding of the purpose of the study. It cannot stand alone as a clear summary of the study. Terminology in the report is not consistent. For example, in the executive summary it states "the nonprofit arts industry can be credited with $2.159 billion in economic activity." In chapter one, the study states, "arts organizations and audiences generated $2.159 billion of spending." The study is an example of using case study to obtain more in-depth analysis. The study serves as a model on how the universe - arts sector is defined: 1) Nonprofit arts organizations including but not limited to 501(c)(3) institutions, local arts agencies, literary magazines, galleries, public radio, performance arts spaces, arts service organizations and arts education organizations. 2) Festivals, 3) Commercial arts organizations. The sample does not include commercial arts organizations. The study used the conservative economic multiplier of 2.4. This is slightly lower than the standard economic multiplier of 2.5. Return to Literature Review