Cultural districts and economic development in American cities

•Economic development has become the primary focus of local arts policy in the US.•More evidence is needed regarding whether investments in the arts generate economic growth.•State and federal arts policy increasingly supports creative ‘places,’ not just artists and organizations.•Focusing on the economic development aspect of the arts can lead to neglect of other arts policy goals.

Arts policy at the local level in the United States has taken a turn toward emphasis on economic development. In particular, a lively cultural scene is held to be an attractor of mobile, skilled workers, entrepreneurs, and businesses, both in providing a location with interesting opportunities for consumption of culture, and as providing an ambiance that could lead to greater productivity in all industries that rely upon creativity and innovation. This paper assesses the hypothesis that public investments in the arts can spur local development, and the implication for the choices over which are the most effective public investments if the hypothesis is true. It critically examines changes in state and federal arts policy that have shifted focus toward creative places and cultural districts, rather than just artists or nonprofit arts organizations.