This morning, Scioto Analysis, in partnership with The Democracy Collaborative, published The Economic Impact of Cleveland’s Music Industry. The report estimates that Cleveland’s music industry contributes more than $2.5 billion in annual economic value, supports nearly 23,000 jobs, and generates more than $1.1 billion in annual earnings throughout the metropolitan economy.
A city with a long musical history, Cleveland provides a case study of the relationship between cultural institutions and regional economic activity. Institutions such as the Cleveland Orchestra, Playhouse Square, the Rock and Roll Hall of Fame, and a diverse ecosystem of local venues, festivals, artists, and educators help sustain both cultural vitality and economic activity across the region. The economic impacts extend beyond the music industry into retail, information services, professional services, hospitality, and other industries.
Analysts also estimate that 58% of the earnings generated by the music industry within the region's arts and entertainment sector go to local residents. These earnings help support people who live, work, and create in the community. Understanding who receives these earnings is an important part of assessing how economic activity benefits local residents.
The report is part of an ongoing effort to deepen Cleveland’s understanding of its anchor institutions and their role in local economic development. Anchor institutions are organizations with deep roots in their communities, including hospitals, universities, foundations, and cultural nonprofits. These organizations purchase goods and services, employ workers, invest in facilities, educate young people, and convene local stakeholders.
More than two decades ago, The Democracy Collaborative coined the term “Community Wealth Building” to describe an approach to local economic development centered on democratic ownership, broadly shared prosperity, and community control. One of the first Community Wealth Building pilot projects occurred in Cleveland, where hospitals, universities, and foundations supported the creation and development of the Evergreen Cooperatives, a network of worker-owned businesses that continues to operate in the area.
In the years since, The Democracy Collaborative has developed the concept of an “anchor mission,” through which institutions direct their purchasing, hiring, investment, and other resources toward the long-term welfare of their communities. Adoption of this approach has primarily been concentrated in universities and hospitals. This report extends that conversation to Cleveland's music economy, estimating its economic contributions and identifying opportunities for community wealth building through local artists, businesses, and cultural institutions.
Museums, theaters, music venues, orchestras, libraries, and cultural nonprofits have procurement budgets, investments, and payrolls that connect them to the wider economy. Cleveland’s music industry includes local entrepreneurs, creative workers, independent venues, and community-focused organizations. The report’s findings provide a basis for examining how these organizations’ economic activity supports local employment and earnings.
Cleveland’s musical heritage is both a cultural and an economic asset. By estimating the industry’s economic contribution and examining where earnings flow, this report provides information for policymakers, cultural institutions, and residents considering the role of music in regional economic development. The full report can be accessed here.