Tools of the Trade: UK Research Intermediaries and the Politics of Impacts

In recent years questions concerning the impact of public research funding have become the preeminent site at which struggles over the meanings and value of science are played out. In this paper we explore the ‘politics of impact’ in contemporary UK science and research policy and, in particular, detail the ways in which UK research councils have responded to and reframed recent calls for the quantitative measurement of research impacts. Operating as ‘boundary organisations’ research councils are embroiled in what might be characterised as the ‘politics of demarcation’ in which competing understandings of the cultural values of science are traded, exchanged and contested. In this paper we focus on the way the UK’s ‘Engineering and Physical Sciences Research Council’ (EPSRC) has responded to contemporary policy discourses concerning the impacts of public research expenditure. We argue that, in response to the shifting terms of contemporary science policy, the EPSRC has adopted three distinct strategies. Firstly, in collaboration with other research councils the EPSRC have emphasised the intellectual and metrological challenge presented by attempts to quantify the economic impact of public research expenditure, emphasising instead the cumulative impacts of a broad portfolio of ‘basic science’. Secondly, the EPSRC has sought to widen the discursive meaning of research impacts – specifically to include societal and policy impacts in addition to economic ones. Thirdly, the EPSRC has introduced a new framing into the ‘impact agenda’, preferring to talk about ‘pathways to impact’ rather than research impacts per se. In responding to government priority setting, we argue that the EPSRC has sought to exploit both the technical fragility of auditing techniques and the discursive ambiguity of notions of impact.     

The efficiency of German public theaters: a stochastic frontier analysis approach

In recent years the economic performance of public non-profit sectors such as cultural services has become an interesting economic issue. This is due to the high dependence of cultural institutions on public funding on the one hand and the increasing cost-pressure on public budgets on the other hand. In order to achieve an efficient, cost-minimizing resource allocation public authorities who decide on the distribution of public budgets need reliable performance indicators. Against this background, this paper analyzes the efficiency of German public theaters for the seasons 1991/1992–2005/2006. Using a stochastic frontier analysis approach, we test whether the assumption of cost-minimizing behavior is reliable in this sector. Moreover, several panel data models that differ in their ability to account for unobserved heterogeneity are applied to evaluate the impact of unobserved heterogeneity on the efficiency estimates. The results indicate that the cost-minimizing assumption cannot be maintained. Consequently, an efficiency analysis based on a cost function approach seems inappropriate in the case of German public theaters. Further, we find a considerable unobserved heterogeneity across the theaters, which causes a significant variation in the models’ efficiency estimates. This implies that failing to account for unobserved heterogeneity leads to biased efficiency values. Overall, our results suggest that there is still space for improvement in the employment of resources in the sector.     

The impact of ‘central places’ on spatial spending patterns: evidence from Flemish local government cultural expenditures

Governments often see it as their responsibility to support cultural life and at times spend a significant amount of resources in the pursuit of this goal. The present article analyses whether and how municipalities influence each other in this decision to spend resources on the arts (using data on local government cultural spending in 304 Flemish municipalities in 2002). Following ‘central place theory’, the focal point of the analysis is the idea that––especially for cultural expenditures––large municipalities (and, specifically, ‘central places’) may affect their neighbours’ behaviour differently than small municipalities. The empirical analysis supports this idea. Indeed, we show that Flemish municipalities’ cultural spending is generally positively affected by that in neighbouring municipalities. This pattern is, however, significantly more complex for municipalities neighbouring the 13 largest Flemish cities.

Methodological Individualism and Cultural Economics

This paper considers the communitarian critique of the method of economics, especially in regard to its methodological individualism, with reference in particular to cultural economics. It asks whether cultural goods can be modelled in a meaningful way under the usual assumptions in neoclassical economics about individual economic agents. Special attention is paid to Charles Taylor's critique of 'atomism', and his suggestion that some goods are 'irreducibly social'. The implications of the critique for (1) public funding of the arts, and (2) copyright policy, are considered.     

Direct versus indirect aid to the arts: A Canadian perspective

Conclusions The bulk of contemporary policy concern in the cultural area is focussed on the nature of government assistance. In particular, there is a growing feeling that indirect assistance to cultural industries should be promoted to a greater extent than it has been in the past. This feeling reflects both the view that real levels of direct government grants may not be sustainable and the presumption that indirect forms of assistance (such as tax concessions and the like) can channel aid to artists more efficiently than direct forms of assistance, such as Canada Council grants to arts organizations. The various arguments offered in favor of one or another approach towards funding cultural activities are certainly not conclusive. The main point to be made in this regard, however, is that debate over how culture should be funded is taking place in the absence of explicitly formulated operational objectives as well as crucial information about how the cultural production and marketing processes operate. In this regard, ineffectual policy-making across the broad spectrum of cultural assistance programs may be of far greater concern than any efficiency differences which might be anticipated between various forms of assistance to the arts.     

A Cultural Political Economy of Research and Innovation in an Age of Crisis

Science and technology policy is both faced by unprecedented challenges and itself undergoing seismic shifts. First, policy is increasingly demanding of science that it fixes a set of epochal and global crises. On the other hand, practices of scientific research are changing rapidly regarding geographical dispersion, the institutions and identities of those involved and its forms of knowledge production and circulation. Furthermore, these changes are accelerated by the current upheavals in public funding of research, higher education and technology development in the wake of the economic crisis. The paper outlines an agenda for science & technology policy studies in terms of a research programme of a ‘cultural political economy of research and innovation’ (CPERI). First, the implications of the overlapping crises for science policy analysis are discussed. Secondly, three rough constellations of contemporary approaches to science policy are critically compared, namely: a techno-statist Keynesian governance; a neoliberal marketplace of ideas; and co-productionist enabling of democratic debate. CPERI is then introduced, showing how it builds on the strengths of co-production while also specifically targeting two major weaknesses that are of heightened importance in an age of multiple crises, namely neglect of political economy and the concept of power.     

Why culture attracts and resists economic analysis

The realm of arts and culture can be seen as ephemeral and ill-suited to the ‘intrusion’ of quantitative analysis. Yet, demand amongst end-users for economic research into cultural and creative industries is stronger today than ever it has been in the past. Oddly, culture seems to both attract and resist economic analysis. Drawing on an analysis of recent research findings related to multi-platform strategies in the television industry, this article examines what is distinctive about economics of culture, and it assesses the appeals but also the challenges associated with conducting scholarly research work in this particular area.     

Shaping strategic research: power,resources, and interests in Swedish research policy

'Strategic research’ has become a goal of government policy throughout the industrial world. This paper follows the emergence of new approaches to the funding of 'strategic research’ in Sweden, by examining three research foundations created in the late 1990s, and considers their ambitions, limitations, and achievements.     

Rational Philanthropy and Cultural Capital

This paper develops a theory of rational philanthropyin forming ``cultural capital' and aestheticpreferences. The study maintains that changes incapital market opportunities provide investmentmotives for private and public giving. Theseimplications are examined in a Vector Autoregressive(VAR) model of funding in the arts and humanities inthe United States for the period 1966 to 1997. Theresults suggest private philanthropy increased inresponse to both lower real returns on capital marketassets and cuts in public funding. On the other hand,public funding for the endowments is not explained byany of the variables in the model, including its pasthistory.     

How cultural organizations’ size and funding influence innovation and performance: the case of museums

Our work pursues a twin aim. Firstly, we explore the influence of organizational size on innovations in museums as well as its impact on museums’ economic, market and social performance. Secondly, we analyse how the (public–private) funding of such organizations impacts innovation and performance. The empirical work is based on information from a survey of 491 museums (British, French, Italian and Spanish). We find that museum size does prove relevant in the commitment to engage in innovation but that public funding of museums does not encourage innovation. We also highlight the importance of the explanatory power of the type of funding on the performance of these cultural organizations. This research also reveals how organizational and technological innovations as well as innovation in value creation in museums enhance economic, market and social performance.     

Revisiting ‘Weinberg’s Choice’: Classic Tensions in the Concept of Scientific Merit

Alvin Weinberg’s classic and much debated two articles in Minerva, “Criteria for Scientific Choice” (1963) and “Criteria for Scientific Choice II – The Two Cultures” (1964), represent two of the first and most important attempts to create a meta-discourse about priority setting in science policy, and many of the points advanced remain relevant. The goal of this paper is to elaborate on the relevance of some of Weinberg’s original arguments to priority setting today. We have singled out four issues for attention: The tension between scientific and institutional choice, the assumptions behind the triad of scientific, technological and social merit, the elusive ‘externality from size’ argument for funding promoted by Weinberg, and finally the problems involved in the idea of basic science as an ‘overhead cost’ for applied science, and applied science as an ‘overhead’ on a sectoral mission. These four issues will be elaborated from a policy perspective and connected to present day challenges for science and technology policy.     

Moral rights protection for the visual arts

Beginning in 1979, certain states extended extra copyright protection, known as “moral rights” protection, to visual artists. Moral rights protection, which was incorporated into U.S. copyright law in 1990, ensures that works cannot be altered in a manner that would negatively impact the reputation of the artist. Using difference-in-differences regression strategies, we compare artists and non-artists in states with moral rights laws to those in states without these laws, before and after the laws are enacted. This enables us to test the impact of the laws on the behavior of artists, consumers, and policy makers. Our analysis reveals that the average artist’s income falls by around $4000 per year as a result of moral rights legislation, but we find no impact of the laws on artists’ choices of residence or on state-level public spending on the arts.     

Determinants of Public Cultural Expenditures: An Exploratory Time Series Analysis for Austria

Austria calls itself a ``cultural nation' as the arts, the performing arts (theaters) and museums, in particular, play an important role in public debate. However, the question arises as to whether public cultural expenditures as an indication of the significance of cultural policy are really as important when compared to other policy fields as political parties and the government try to suggest. A time series of public cultural expenditures for the period from 1967 to 1998 is taken as a basis for testing econometrically whether public expenditures (measured primarily as the ratio to GDP) follow a growth path. Based on tests for the stationarity of the time series of cultural expenditures in Austria, there are empirical indications that cultural expenditures, gross domestic product (GDP) and the relative price index (GDP and government expenditures) are cointegrated. Further econometric estimations (error-correction models) show that cultural expenditures increase with growing GDP but are vulnerable to short term fluctuations. Additionally, ``Baumol's cost disease' adds to the long-term growth of cultural expenditures. In the past the growth path of cultural expenditures has been stable and independent of the ideology of ruling parties, the form of government and political business cycles.     

The political economy of cultural spending: evidence from Italian cities

We investigate the relationship between Italian municipalities’ spending on culture in the 1990s and 2000s and a number of political variables—such as a left/right dummy, an election-year dummy and a term-limit indicator—controlling, among other things, for economic and socio-demographic characteristics of the population, the level of human capital and instruction, proxies of social capital, the extent of private financing of cultural provisions and touristic and artistic relevance. We use a panel-data regression analysis and find that, indeed, some determinants of public expenditures on culture are political. In particular, we identify an electoral cycle in which the incumbent spends less on culture in an election year. This result is robust for variations in the empirical model accounting for both the persistence and spatial interdependence of cultural expenditures by municipalities.     

Politico-economic interactions of German public performing arts institutions

Our paper analyzes the conduct of German public performing arts institutions in terms of non-market decision making or public choice. Apart from consumers of performing arts managers of performing arts institutions and public donors are main agents. A manager of a performing arts institution will not assume that the number of visitors is independent of his institution's programme or the ticket prices. By the same reasoning he will regard the amount of public subsidies not as exogenous, but dependent on his own policy. If future grants depend on present and past success (however defined), this will feed back into managerial decisions, along with expectations about demand. Data for the Federal Republic of Germany serve to empirically support the theoretical argument.     

Credibility and Economic Value in the Visual Arts

The paper states that the quality of visual arts cannot be measured objectively. An artist must be credible to the public in order to generate economic value. How is credibility and thus economic value generated on the market? To judge the quality of arts, it takes experts. They form a worldwide network relationship and apply cultural knowledge, a highly specific type of knowledge which requires lifelong learning. Cultural knowledge is only in part of a factual nature and includes subjective elements. Since the public cannot in general ascertain the quality of an artist's oeuvre directly, experts must themselves be credible to the public in order to lend credibility to a given oeuvre. It is shown that the process by which experts generate public credibility for a given oeuvre is path dependent, i.e., may by chance end up at inferior solutions.     

商丘古城文化旅游战略研究

文化遗产是一个地区历史和文化的见证,是对历史的记录,对现代人而言是具有重要价值的历史文化资源。历史文化名城商丘,在国家相关政策引导下,积极进行有机更新。通过调研的方法,依托文化资源与旅游业相融合发展的政策背景,结合商丘的文化遗产状况分析商丘古城文化旅游建设过程的自身优势以及在发展文化旅游时存在的问题,提出发展文化旅游建设需要管理者积极转变思路,以游客需求为中心提供相关服务;进行部门合作,规范管理;政府给与产业政策倾斜,多产业融合的措施和建议,以期为商丘古城旅游建设添砖加瓦。     

A latent class model of theatre demand

This paper investigates market segments for theatre demand using a latent class model. The model is applied using data from a stated preference survey implemented in a regional theatre in England. Results allow three classes of theatregoers to be identified. The largest and ‘main class’ comprises mainly affluent people who show a strong preference for main theatre venues, consider reviews of the productions, whether the author is known, and like all types of shows. The second is a ‘popular class’, exhibiting the smallest willingness to pay and manifesting a strong preference for comedies, paying little attention to venues and disliking more sophisticated shows. The third is an ‘intellectual class’ of theatre goers, who exhibit the maximum willingness to pay, and show a strong interest for drama and adaptation of productions, and more independent aesthetic judgement. The study shows the usefulness of latent class models in identifying market segments, a procedure that is relevant to policy makers and theatre managers in setting prices, identifying different kinds of consumers to increase people’s engagement with theatre, and undertaking social analysis of performing arts.     

Why has cultural economics ignored copyright?

My stance is that copyright policy should be viewed as part of cultural policy; cultural economists have had a great deal to say about subsidy and cultural policy but very little about copyright, though cultural economics is well placed to analyse copyright as an incentive to creativity in the creative industries because of its understanding of cultural policy and of artists’ labour markets. The article contrasts subsidy and copyright as policy tools and briefly discusses two current policy problems in relation to copyright—regulating copyright collection societies and the so-called ‘copyright levy’—arguing that these are the sort of issues cultural economists could (and should) be dealing with.

Full-income and price elasticities of demand for German public theatre

This article provides estimates of price and income elasticities of demand for German public theatre, using a large and reliable data set for 178 theatres over 40 years (1965–2004). It is posited that the consumption of the performing arts is a time-intensive activity for which both a theatre ticket and leisure time are necessary. Thus, the impacts of ‘full-income’ (‘leisure time income’ added to disposable income) and the price of leisure time on theatre attendance are examined. The findings indicate that the demand for the performing arts is own-price inelastic. The disposable income elasticity is significant, positive and equals approximately one. In contrast, the full-income elasticity is well above one and greater than usual income elasticity indicating that the performing arts are a luxury good when leisure time income is included in the consumer’s budget. The positive full-income effect is, however, offset by the negative price of leisure effect indicating that leisure time is a complement for the performing arts. Additionally, three objective quality characteristics of theatrical productions which can positively influence theatre demand are examined.