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Friday, May 10, 2013

Understanding the Creative Economy in India: Richard Florida

Creative Capital theory and the 3Ts of economic development, which include Tolerance, Technology and Talent, provide an in- novative framework for measuring a region’s Creative Economy potential. In this paper, the core characteristics of the 3Ts are reworked to apply to the Indian context. 
 The report presents both the component sub-indices of the Creativity Index and other, related measures for regional technology, talent, and tolerance.Tolerance, the first “T” of economic development is a quality recognized as essential to objective thinking since the 19th century. In the Indian context, the Mosaic index has been used to measure the level of tolerance in a region. The Mosaic Index is calculated by the concentration of Scheduled Tribes or Castes, percent of population that is foreign born, rural and urban literacy divide, and finally, a Reli- gious Herfindahl Index which measures religious diversity within a specific State or Union Territory. 
Talent is the second “T” of economic development. Talented individuals are responsible for generating the innovative ideas that result in newly developed technologies that can stimulate economic growth and prosperity. While incubating talent through investments in employee training and education is important, the regions that can successfully attract and retain Talent will ultimately be the most competitive. The Talent Index is used to measure the amount of Talent within a region. Talent is measured as the percentage of a region’s workforce that is employed in Creative Class occupations.

Technology is a critical component for any region that seeks to achieve economic growth and pros- perity and is the final “T” in the 3T analysis. The greater the extent to which technology is part of a region raises the competitiveness of that region by improving the ability of businesses to provide new goods and services and acquire cost-saving advantages, often through productivity gains.
Three composite indexes — Tech Connectivity, Tech Education, and Computer Access are used to calculate a region’s level of technological capability and together, these measures are used to produce  what is called the Technology Index. Tech Connectivity is composed of three sub-categories: the shares of households per 100,000 with broadband internet access, hard line telephone access, and mobile phone access. Tech Education is measured by combining the numbers of universities, colleges, technical colleges, and technical research institutions in a region. Finally, internet connectivity is measured by the share of households with a computer or laptop and access to the internet .
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