German report 2000

By John R.Bryson

Table des matières

1 - Introduction
2 - But what, then, is 'culture'?
3 - 'Culture' in the humanities/social sciences: the "cultural turn"
4 - Services research in Germany: the service gap discussion
5 - The service gap discussion and 'culture': one step forward
6 - 'Cultural institutions' as a subsector of services - a 'double' growth sector: in reality and in research
7 - Culture as the frame of reference for urban and regional studies
8 - Bibliography

1. Introduction

A wider bibliographical search for books, articles, texts and studies reveals that "cultural dimensions of services" as an independent and explicit theme does not exist in German services research. The question, nevertheless, is treated as one aspect among several in various works on services, the main focus of which is usually directed on other aspects of services. And there are, as a matter of fact, specific aspects of the theme, "cultural services", "services culture and culture in services" or "services as elements of culture", which are treated in the recent literature.
This means that a "cultural turn" in social science, which is generally acknowledged (and made explicit for instance by Lackner/Werner 1999), has not yet reached services studies, which are traditionally based in economics, business, sociology and geography, as such - or only indirectly. Service research is still essentially focused on the more narrowly economic, functional aspects, i.e. aspects like employment, input-output relations, contribution to (national) income and growth - with some interesting exceptions, though.

2. But what, then, is 'culture'?

We are dealing here with a difficult term, even more so as the word "culture" probably has varying connotations in our RESER languages (which, seen in a global perspective, are still rather close together, after all). For instance, what is, among other things, meant by "Kultur" in German, is perhaps in French or English better expressed by "civilisation". (Thus, Huntington's [terrible] book "clash of civilisations" has been translated into "Krieg der Kulturen" in German).
There are, at least, four dimensions of the word "culture" or here rather of the German word "Kultur" which have to be mentioned (see also Rassem 1995, pp. 746ff.):
1) = the opposite of nature: man's realm through cultivating the earth; beginning with "agri-culture" (and bu-colos = shepherd) and continuing with all forms of division of labour in society; the concept of culture is similarly implied in "socio-cultural"; implies is here basically the unity notion of one human culture: humanity as culture;
2) = a (larger) subgroup of mankind with commonly held concepts, visions, ideas, values, traditions, activity patterns, beliefs, norms, habits, attitudes etc. etc. (in English and French perhaps rather: civilisation, see above); this leads to an understanding of culture on earth as not unified but varied instead: the variety of cultures/civilisations studied, above all, by ethnology and anthropology, more precisely "cultural (!) anthropology";
3) = the arts (or even "fine arts") and their institutions: the ensemble of functions and institutions which are not directly useful (l'art pour l'art), transcending the material necessities of life; in this sense also understood as: achievements, treasures - a specific realm of society, often understood in an elitist sense, distinguishing the "cultural" from the "uncultural", barbaric, "low".
4) = an opposite to 'the economic' in society, i.e. the non-economic dimensions of human societies (sometimes also understood as the all-encompassing concept which would include the economic), i.e. like in 3) the concepts, traditions, activity patterns, beliefs that underlie the functioning of a given culture-civilisation. It comprises all that which an individual acquires in the process of "Enkulturation" (socialisation "inculturation") into his/her society; this acquisition/learning process is always incomplete; 'culture' is an unfinished, open process of societal communicative interaction in which an individual is always only partially involved, but as an active agent - thus, a concept which is very much founded on social interaction, agency, communicative interaction and common interpretation (cf. also Lackner/Werner 1999, p. 46).
It is especially this last meaning of 'culture' which is relevant for our purposes here. It is, however, of course related to the other meanings. For instance, as 'culture' requires a certain degree of organisation, cultural institutions (3) emerge from the cultural process (4) in the culture communication community (2), which, however, does not necessarily have to be a language community, a nation, a nation state etc.

3. 'Culture' in the humanities/social sciences: the "cultural turn"

There is widespread recognition that a change of orientation and methodology has swept through the social sciences, or humanities respectively, during the last three decades of the 20th century, which can be called the "cultural turn". It is the realization that explanation in terms of causal or systemic relationships in the disciplines concerned is constructed less on the basis of socioeconomic factors, 'functional' or - in an economic sense - 'rational' (Lackner/Werner 1999, p. 34) dimensions of phenomena and processes but rather around "cultural" aspects or factors, by transferring theoretical cornerstones from ethnology and ("cultural") anthropology into other disciplines, in the first place history, then sociology, economics and political science as well as geography. In a different setting, the disciplines of modern languages are evolving into "cultural" or even "area studies" (Lackner/Werner 1999, p. 30ff.).
The theoretical basis goes back to a number of scholars. The German discussion mentions especially Clifford Geertz for the early evolution in the 1970s and Pierre Bourdieu and Anthony Giddens for the time since the late 1970s, but beyond those Max Weber and Margaret Mead or Thorstein Veblen in economic sociology (Herrmann-Pillath 1999) are also important pioneers and protagonists of the approach.
Furthermore, the cultural turn can, of course, also be regarded as a swing back from "modern" economic, socio-economic, rational explanation to "pre-modern" cultural explanation which traditionally has been associated with concepts like "mentality" or even Hegel's "Geist". No doubt, the cultural turn has produced and is producing achievements as well as pitfalls. The "relapse" into cultural modes of explanation leads to a certain unquestionability of statements about culture - very much in the sense of a "black box" - and to an exaggeration of factors which cannot be scrutinized further.
In addition, and perhaps most interestingly, there is the "cultural turn" in economics , i.e. the observation that "cultural" factors - in the sense of "non-economic", "non-rational" - have been gaining an increasingly strong position in explaining e.g. paths and conditions for economic growth and success. These cultural factors play a strong role in investigations on the transformation process of the former socialist states (Herrmann-Pillath 1999), based on the realization that there are influences on this process beyond economic rationality (or power, for that matter, which would lead to a political economic approach).
"Culture" understood in that direction encompasses "informal institutions", "mental" models (Herrmann-Pillath 1999), attitudes of economic agents (be they consumers, entrepreneurs, inhibited entrepreneurs, managers, workers etc.) as well as modes of interaction (especially communication). Insights about theory and methodology of such economic-cultural approaches are provided by Herrmann-Pillath 1999.
In one respect, this phenomenon of "culturalisation of economics" is nothing new to services studies, to be sure. It is, in fact, well known from the work on networks, creative and innovative milieus and from the notion of "soft" location factors. Here, a lot of work that has been done on services interacting in networks and creative milieus can be classified as studying "cultural dimensions" of services.

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4. Services research in Germany: the service gap discussion

German research on services in general is still very much dominated by the "services gap" debate, i.e. the question whether - and why - the German economy is comparatively "over-industrialised" and lagging behind in the global and secular process of tertiarisation, of evolution towards a service economy with ever smaller shares of turnover and persons employed in manufacturing.
In research on this question, analysts usually compare employment data for the US and other countries with those for Germany. It is now generally accepted among scholars in Germany that the German economy suffers primarily from an employment gap that must be interpreted as a relatively slower dynamism in the service sector. The labour participation rate is substantially lower than in other countries, mainly due to the low labour participation rate of women. A new study by Cornetz and Schäfer, improving the data processing of the preceding investigations, confirms that there is in fact a service gap in Germany. A careful comparison of occupational data from CPS (current population survey) in the US and the socio-economic panel (SOEP) in Germany reveals that in the US in the mid-1990's, over 80% of the workforce are in service jobs, whereas the quota for Germany is around 75%. Taking labour participation rates into consideration, the gap widens enormously. There are 310 service jobs per 1000 inhabitants in Germany as compared to 418 service jobs (per 1000 inhabitants) in the US (Cornetz/Schäfer). There is, however, an effect of "catching up" in Germany, as the service occupation proportion is increasing more strongly in time than in the US.
Concerning the type of service occupations with the most striking quantitative differences between the two countries, the results are highly interesting: It is not disputed that the range of wage distribution is wider in the US than in most European countries including Germany. However, contrary to a widely shared assumption, it is not low paid "Mac-jobs" which account for the markedly different employment share in services, but the far higher proportion of (mostly well paid) producer services, requiring skilled personnel, that make up for most of the difference in the employment structure of the US: 183 in the US versus 100 in Germany respectively work in producer services per 1000 inhabitants. In particular, Cornetz and Schäfer hold that there is a lower share of managers in Germany (and not so much one of engineers, scientists or other business service occupations). How can the discrepancies be explained? Could it not be the case that either in the US a lot more occupations on lower levels in the industrial hierarchy are classified as "managerial" than in Germany, or that the German (and European) economy on the whole can do with a smaller share of managerial occupations, being more efficient in that respect ("less chiefs for more indians"). Regarding value added figures, the contribution of the service sector to total value added in the German economy is around 40%, whereas it is about 65% in the US. This, however, is partly explained by the comparatively smaller importance of outsourcing of service functions from manufacturing enterprises in Germany.

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5. The service gap discussion and 'culture': one step forward

Baethge (2000) takes the service-gap discussion one step further and offers in his highly original contribution a "cultural" interpretation of the German peculiarities in sectoral and functional structure. He emphasizes once again the observation of an employment gap in Germany in comparison with other economically leading countries, which for him is essentially due to the adherence to a specific "industrialist" (or more correct: "manufacturalist") model of economic and societal organisation in Germany, where services have never had a chance to realize specific patterns of specialisation, labour organisation, formation and qualification procedures and interest representation of their own or a services-oriented concept of efficiency and productivity. Service work has in many respects been incorporated into and subdued to manufacturing work, a fact which is also reflected in the minor role which services have played in business studies and national economics in Germany for a long time (Baethge 2000, p. 151f.). 'Work' for Germans has traditionally been manufacturing work (if not bureaucratic or academic, of course, for special groups of society ...). This phenomenon must also be looked at from the demand side: With the considerably smaller labour participation rate of women in Germany, there are much less household services in demand in the country. This is the fundamental reason why a great proportion of the job potential realized in other countries in the last two decades has not been transformed into employment in Germany. In the end, there exists a "work culture" in Germany which is characterised by a smaller degree of (formal) division of labour than in other countries. Baethge concludes, however, that this situation will not survive as the foundations of the old "industrialist" model of the German economy are already trembling.

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6. 'Cultural institutions' as a subsector of services - a 'double' growth sector: in reality and in research

The analysis of the economic and regional economic implications of the existence (and of the public financing) of 'cultural institutions' has been a topic for research - and consultancy work - for a number of years, and 'Kulturökonomie', i.e. the economics of cultural institutions, its economic factors and consequences, has expanded substantially in the 1990s and seen a number of case studies, following strands of thought in the international discussion: Among the 'models' for many of the German studies are Baumol and Bowen's classical study on the economics of the performing arts (1966), Blaug's reader "The economics of the arts" (1976), the New York - New Jersey study (Port Authority of New York and New Jersey 1983) and Myerscough's "Economic importance of the arts in Britain" (1988), in the 1990s also very much Zukin's work in cultural urban sociology on New York City. It should also be remembered here that 1976 marks the year when the relevant international "Journal of Cultural Economics" was started.
Since these cultural or arts institutions - theatres, museums, music etc. - are, of course, invariably services, we are dealing here with the economic or regional economic analysis of an important subgroup of services.
As a rule, the authors of the regional cultural economy studies seek to describe the relevance of the arts for the economy in question and establish a "culture multiplier index", i.e. a multiplication factor which indicates how much local/regional turnover is induced by the spending of one DM for culture, beyond a simple description of the cultural (arts) economy. Here, culture is treated a an economic (sub-)sector. In addition, it is held that the "cultural equipment" of a city has indirect effects on its economic performance: It improves the attractiveness for knowledge-bearing elite personnel, it contributes to a positive perception of the region elsewhere and it helps to strengthen identification processes and something like "social pride" in the regional population (Dziembowska-Kowalska/Funck 2000, p. 5). Here, culture is seen as a special and (more and more) important factor of production. On top of that there is the observation that the existence of cultural institutions and their activists has positive effects on creative processes in creative businesses which are more closely connected to the arts, like advertising, photography, design, architecture; this is an approach which considers culture to be more than just one location factor, but rather an essential resource for the economic activities mentioned. Here, however, empirical work beyond theoretical speculation (like in Dziembowska-Kowalska/Funck 2000, p. 5) is rare.
The topic and the approach, after all, is not really new for the 1990s. All through the 1980s the regional economics discussion was enriched with "cultural" elements, when competition between the highest-ranking cities and urban agglomerations in Germany for leadership in cultural matters was already very strong, and big cities tried to excel themselves with new museums, theatres, art galleries and concert halls (e.g. Neue Pinakothek in Munich, Staatsgalerie in Stuttgart, Museum Ludwig and Philharmonie in Cologne etc. etc.).

6.1. The multiplier effect of public spending for culture
An often cited pioneer work on the local economic impact of public spending for the arts is the study on Bremen by Taubmann and Behrens (1986) which was followed by the one on Neuss (near Düsseldorf) by Gerwien and Holzhauser (1989), also produced in the Bremen University Geography Department, which has since formed a stronghold for the topic: It is Gerwien and Holzhauser's multiplier equations which have been used in most of the later studies; and in the late 1990s Engert has delivered his thesis in Bremen (1997), which includes a short history of the "urban culture and urban economy" studies. Before that, a first survey and summary of the approach in German was given by Behr et al. in their 1989 book. In the 1990s a number of case studies have followed, among them Behr/Gnad/Kunzmann 1990, Haubrich-Gebel 1995 (Göttingen), Dziembowska-Kowalska et al. 1996 (Karlsruhe), Blum et al. 1997 (Dresden).
The studies have produced - mainly for larger cities and conurbations - fundamental data and statements about the size, role and impact of the cultural sector within the urban economy. They are generally very descriptive (so Dziembowska-Kowalska et al. 1996, who are nevertheless also hinting at the importance of arts institutions as a source for creative impulses for a number of branches, like advertising, photography, design). The major question is: How much turnover in the local/regional economy is generated by the public subsidies that go into the cultural sector. The factor is usually rated at something above 1.0, i.e. more money is earned somewhere else in the regional economy than the local state spends on culture. Beyond the analysis and into measures, in one of the most recent publications, Blum et al. give some interesting pieces of advice, e.g. that the most expensive tickets for the opera and other "high-culture" institutions should be sold in auctions, as this would probably raise their prices.
Through the 1990s there is a discussion about the legitimacy of these implication studies and especially about the calculated multiplier values regarding the effects of expenses for the arts. The basic questions are whether turnover is in fact created through the subvention of cultural institution or rather turned away from other branches and whether the cultural services are in fact basic functions (in the sense of export base theory) or not rather non-basic functions. This critique is taken up by Monika Haubrich-Gebel in her study on the arts in Göttingen (though not adhered to in her own multiplier chapter).
More recently, Sonja Clausen studies in a (regional) economic analyses the "implications of public financing of cultural events", using the example of the Schleswig-Holstein music festival (the second largest music festival in Germany after Bayreuth's Wagner event). She gives a comprehensive survey of the problems involved in using a multiplier factor to assess the regional economic impact of the subsidies involved, also criticising a number of earlier studies which neglect parallel losses in turnover in culture or other (sub-)sectors. Using a welfare economic approach and a total-benefit-calculation, public subsidies for cultural attractions cannot be justified by regional economic gains. In addition, the author looks into the economic effects of an improved location image by subsidising a given cultural event, i.e. using this for marketing purposes. These image effects may be indeed substantial, but they are difficult to assess in comparison with the zero signalling situation ("no festival").

6.2. Culture as an important source of income and employment
Beside the largely state financed cultural institutions which form the focus of the multiplier studies, there is a range of cultural businesses which are in fact vital sources of income and act as export services for metropolitan areas, especially the film business and related services, music production and distribution, photography, design and also advertising; in addition, there is the new integration of media and arts elements with computering in the evolving "multimedia" industry. With parallels to research in the U.S. by Allen Scott e.g., Stefan Krätke and Renate Borst emphasize in their new Berlin book the relevance of these branches (essentially services, but with linkages to material production like copying etc.) for the economy of the city. They find interesting local concentrations of the film business and related services at the edges of Berlin's central business districts and interprete them as production clusters, although this has not yet been proved by an interaction analysis of the businesses concerned. The research shows, to be sure, that these "cultural industries" form indeed an important category for economic and spatial research in metropolitan areas.
Ifo-Institut in Munich has delivered a number of studies to state institutions, among them a survey of the economic role of the cultural sector in Germany, a study for the Home Ministry (Hummel/Waldkircher 1992). It shows that the cultural sector comprises 2,5% of total value added of the German economy, 2,9% of persons employed and 2,0% of fixed capital investments; growth was higher than the economy as a whole during the 1980s, but there was a minor loss against the total economy in the early 1990s due to the unification expenses. The figures also reveal the labour intensity of the sector. Definition of the cultural sector is a problem; the Munich researchers include the media in total (which should perhaps be separated into a different special sector) as well as (non-university) libraries.
Especially in urban economics and planning studies, "cultural economics" has been on the agenda. The economic role of "culture" and its institutions has been assessed for a number of cities and conurbations during the 1990s. Studies of this kind have become more or less standard work. These studies treat cultural services not as a cost sector for public spending, but as a growth sector in its own rights and a contributor to regional growth.
The federal state of Northrhine-Westphalia has commissioned a voluminous (third) report on the "culture economy" in the state (Arbeitsgemeinschaft Kulturwirtschaft 1998), i.e. on the arts sector (music, painting, sculpting, film, theatre, dance, excluding the media but including literature and book publishing). It assesses the growth of value added as well as employment of this sector, which is both substantially above average making the sector a real growth sector. In addition, it attempts to find linkages within specific sub-sectors and between these and other parts of the regional economy; these results are rather general: In some branches there are notable regional linkages (i.e. regional markets, like specialised music schools or lighting equipment rental firms), in others there are not (record production or book publishing).

6.3. Culture as a (soft) location factor
Extensive work on "soft" location factors in regional and urban development research has included the arts as one major factor of this category. The major study in that direction which was conducted in Germany in the 1990s (Grabow et al. 1995; it includes an extensive summary in English) sums up the discussion around the relatively new distinction between "hard" and "soft" location factors and holds that soft location factors are of increasing importance in locational decision-making; one reason for this is the fact that the differences in availability of hard location factors between regions are decreasing. Soft location factors - a term apparently difficult to translate into English - are defined as those location factors which are rather subjective and intangible and which are generally difficult to measure on the one hand (like the business climate of a region or the co-operation quality of the local administration etc.) or those which are relevant for employees and decision-makers as persons on the other hand, determining or at least influencing the "reproduction quality" of a location (like residential qualities, amenities etc.). Another distinction can be made between business-oriented and person-oriented soft location factors, most important among the former is again the business climate of a region (also perhaps a "cultural" aspect, though in a different sense of the word), among the latter the housing situation and the residential environment. The attractivity of the cultural sector in a given location also counts as a person-oriented soft location factor. Empirical results (from a questionnaire to about 2000 enterprises) on the relevance of soft location factors for a selection of towns in Germany and Austria does, however, not attribute a more substantial importance to this factor: "Many other person-related soft locational factors, including cultural facilities, a field frequently addressed in the public debate on the subject, rank far down in the salience hierarchy of locational factors", and "rating diverges widely (by industry, size of business etc.) (Grabow et al. 1995, p. 33). As a consequence, increasing efforts by local governments with respect to developing "high culture" institutions and costly festivals, which are usually in the interest of only a limited number of people, are not regarded as really favourable for improving local soft location factor conditions (Grabow et al. 1995, p. 39).

6.4. Culture as a specific resource
In connection with the increased role of knowledge and creativity in economic and regional development (Ellger 1996), the arts receive revived attention from a rather different angle of (regional) economic research: For a number of branches of the "creative economy", among them industrial design, advertising, architects, perhaps also writing, journalism and publishing as well as the new combinations of information technology, media and arts sometimes called "multimedia", the existence of a lively arts scene appears to be much more than one among several location factors: the decisive factor of production - as the essential source for ideas. This idea is taken up in Klaus Engert's thesis, who studies the importance of the arts sector for the economy of the city of Milano (!), where about 1% of the persons employed can be regarded as the personnel of the arts sector. Engert uses a postal questionnaire sent to advertisers, designers, architects, publishers, software producers and manufacturers in the furniture and the garment industry, trying to assess the importance of arts institutions for their work, using elaborate quantitative techniques (causal analytical) to process the statements (219) from the questionnaire study. As a result, urban agglomeration advantages seem most important as location factors, qualified personnel comes second and the creative environment is also rated among the top factors.
Notwithstanding the achievements in Engert's study, it seems more adequate to use more qualitative techniques in investigations on the importance of the arts sector for "creative&quotdecision-makers as persons on the other hand, determining or at least influencing the "reproduction quality" of a location (like residential qualities, amenities etc.). Another distinction can be made between business-oriented and person-oriented soft location factors, most important among the former is again the business climate of a region (also perhaps a "cultural" aspect, though in a different sense of the word), among the latter the housing situation and the residential environment. The attractivity of the cultural sector in a given location also counts as a person-oriented soft location factor. Empirical results (from a questionnaire to about 2000 enterprises) on the relevance of soft location factors for a selection of towns in Germany and Austria does, however, not attribute a more substantial importance to this factor: "Many other person-related soft locational factors, including cultural facilities, a field frequently addressed in the public debate on the subject, rank far down in the salience hierarchy of locational factors", and "rating diverges widely (by industry, size of business etc.) (Grabow et al. 1995, p. 33). As a consequence, increasing efforts by local governments with respect to developing "high culture" institutions and costly festivals, which are usually in the interest of only a limited number of people, are not regarded as really favourable for improving local soft location factor conditions (Grabow et al. 1995, p. 39).

6.4. Culture as a specific resource
In connection with the increased role of knowledge and creativity in economic and regional development (Ellger 1996), the arts receive revived attention from a rather different angle of (regional) economic research: For a number of branches of the "creative economy", among them industrial design, advertising, architects, perhaps also writing, journalism and publishing as well as the new combinations of information technology, media and arts sometimes called "multimedia", the existence of a lively arts scene appears to be much more than one among several location factors: the decisive factor of production - as the essential source for ideas. This idea is taken up in Klaus Engert's thesis, who studies the importance of the arts sector for the economy of the city of Milano (!), where about 1% of the persons employed can be regarded as the personnel of the arts sector. Engert uses a postal questionnaire sent to advertisers, designers, architects, publishers, software producers and manufacturers in the furniture and the garmedecision-makers as persons on the other hand, determining or at least influencing the "reproduction quality" of a location (like residential qualities, amenities etc.). Another distinction can be made between business-oriented and person-oriented soft location factors, most important among the former is again the business climate of a region (also perhaps a "cultural" aspect, though in a different sense of the word), among the latter the housing situation and the residential environment. The attractivity of the cultural sector in a given location also counts as a person-oriented soft location factor. Empirical results (from a questionnaire to about 2000 enterprises) on the relevance of soft location factors for a selection of towns in Germany and Austria does, however, not attribute a more substantial importance to this factor: "Many other person-related soft locational factors, including cultural facilities, a field frequently addressed in the public debate on the subject, rank far down in the salience hierarchy of locational factors", and "rating diverges widely (by industry, size of business etc.) (Grabow et al. 1995, p. 33). As a consequence, increasing efforts by local governments with respect to developing "high culture" institutions and costly festivals, which are usually in the interest of only a limited number of people, are not regarded as really favourable for improving local soft location factor conditions (Grabow et al. 1995, p. 39).

6.4. Culture as a specific resource
In connection with the increased role of knowledge and creativity in economic and regional development (Ellger 1996), the arts receive revived attention from a rather different angle of (regional) economic research: For a number of branches of the "creative economy", among them industrial design, advertising, architects, perhaps also writing, journalism and publishing as well as the new combinations of information technology, media and arts sometimes called "multimedia", the existence of a lively arts scene appears to be much more than one among several location factors: the decisive factor of production - as the essential source for ideas. This idea is taken up in Klaus Engert's thesis, who studies the importance of the arts sector for the economy of the city of Milano (!), where about 1% of the persons employed can be regarded as the personnel of the arts sector. Engert uses a postal questionnaire sent to advertisers, designers, architects, publishers, software producers and manufacturers in the furniture and the garmedecision-makers as persons on the other hand, determining or at least influencing the "reproduction quality" of a location (like residential qualities, amenities etc.). Another distinction can be made between business-oriented and person-oriented soft location factors, most important among the former is again the business climate of a region (also perhaps a "cultural" aspect, though in a different sense of the word), among the latter the housing situation and the residential environment. The attractivity of the cultural sector in a given location also counts as a person-oriented soft location factor. Empirical results (from a questionnaire to about 2000 enterprises) on the relevance of soft location factors for a selection of towns in Germany and Austria does, however, not attribute a more substantial importance to this factor: "Many other person-related soft locational factors, including cultural facilities, a field frequently addressed in the public debate on the subject, rank far down in the salience hierarchy of locational factors", and "rating diverges widely (by industry, size of business etc.) (Grabow et al. 1995, p. 33). As a consequence, increasing efforts by local governments with respect to developing "high culture" institutions and costly festivals, which are usually in the interest of only a limited number of people, are not regarded as really favourable for improving local soft location factor conditions (Grabow et al. 1995, p. 39).

6.4. Culture as a specific resource
In connection with the increased role of knowledge and creativity in economic and regional development (Ellger 1996), the arts receive revived attention from a rather different angle of (regional) economic research: For a number of branches of the "creative economy", among them industrial design, advertising, architects, perhaps also writing, journalism and publishing as well as the new combinations of information technology, media and arts sometimes called "multimedia", the existence of a lively arts scene appears to be much more than one among several location factors: the decisive factor of production - as the essential source for ideas. This idea is taken up in Klaus Engert's thesis, who studies the importance of the arts sector for the economy of the city of Milano (!), where about 1% of the persons employed can be regarded as the personnel of the arts sector. Engert uses a postal questionnaire sent to advertisers, designers, architects, publishers, software producers and manufacturers in the furniture and the garmedecision-makers as persons on the other hand, determining or at least influencing the "reproduction quality" of a location (like residential qualities, amenities etc.). Another distinction can be made between business-oriented and person-oriented soft location factors, most important among the former is again the business climate of a region (also perhaps a "cultural" aspect, though in a different sense of the word), among the latter the housing situation and the residential environment. The attractivity of the cultural sector in a given location also counts as a person-oriented soft location factor. Empirical results (from a questionnaire to about 2000 enterprises) on the relevance of soft location factors for a selection of towns in Germany and Austria does, however, not attribute a more substantial importance to this factor: "Many other person-related soft locational factors, including cultural facilities, a field frequently addressed in the public debate on the subject, rank far down in the salience hierarchy of locational factors", and "rating diverges widely (by industry, size of business etc.) (Grabow et al. 1995, p. 33). As a consequence, increasing efforts by local governments with respect to developing "high culture" institutions and costly festivals, which are usually in the interest of only a limited number of people, are not regarded as really favourable for improving local soft location factor conditions (Grabow et al. 1995, p. 39).

6.4. Culture as a specific resource
In connection with the increased role of knowledge and creativity in economic and regional development (Ellger 1996), the arts receive revived attention from a rather different angle of (regional) economic research: For a number of branches of the "creative economy", among them industrial design, advertising, architects, perhaps also writing, journalism and publishing as well as the new combinations of information technology, media and arts sometimes called "multimedia", the existence of a lively arts scene appears to be much more than one among several location factors: the decisive factor of production - as the essential source for ideas. This idea is taken up in Klaus Engert's thesis, who studies the importance of the arts sector for the economy of the city of Milano (!), where about 1% of the persons employed can be regarded as the personnel of the arts sector. Engert uses a postal questionnaire sent to advertisers, designers, architects, publishers, software producers and manufacturers in the furniture and the garmedecision-makers as persons on the other hand, determining or at least influencing the "reproduction quality" of a location (like residential qualities, amenities etc.). Another distinction can be made between business-oriented and person-oriented soft location factors, most important among the former is again the business climate of a region (also perhaps a "cultural" aspect, though in a different sense of the word), among the latter the housing situation and the residential environment. The attractivity of the cultural sector in a given location also counts as a person-oriented soft location factor. Empirical results (from a questionnaire to about 2000 enterprises) on the relevance of soft location factors for a selection of towns in Germany and Austria does, however, not attribute a more substantial importance to this factor: "Many other person-related soft locational factors, including cultural facilities, a field frequently addressed in the public debate on the subject, rank far down in the salience hierarchy of locational factors", and "rating diverges widely (by industry, size of business etc.) (Grabow et al. 1995, p. 33). As a consequence, increasing efforts by local governments with respect to developing "high culture" institutions and costly festivals, which are usually in the interest of only a limited number of people, are not regarded as really favourable for improving local soft location factor conditions (Grabow et al. 1995, p. 39).

6.4. Culture as a specific resource
In connection with the increased role of knowledge and creativity in economic and regional development (Ellger 1996), the arts receive revived attention from a rather different angle of (regional) economic research: For a number of branches of the "creative economy", among them industrial design, advertising, architects, perhaps also writing, journalism and publishing as well as the new combinations of information technology, media and arts sometimes called "multimedia", the existence of a lively arts scene appears to be much more than one among several location factors: the decisive factor of production - as the essential source for ideas. This idea is taken up in Klaus Engert's thesis, who studies the importance of the arts sector for the economy of the city of Milano (!), where about 1% of the persons employed can be regarded as the personnel of the arts sector. Engert uses a postal questionnaire sent to advertisers, designers, architects, publishers, software producers and manufacturers in the furniture and the garment industry, trying to assess the importance of arts institutions for their work, using elaborate quantitative techniques (causal analytical) to process the statements (219) from the questionnaire study. As a result, urban agglomeration advantages seem most important as location factors, qualified personnel comes second and the creative environment is also rated among the top factors.
Notwithstanding the achievements in Engert's study, it seems more adequate to use more qualitative techniques in investigations on the importance of the arts sector for "creative" businesses, tracing interaction paths and sources of knowledge and ideas. A small step in that direction is Katrin Jürgens' dissertation on the Spandauer Vorstadt quarter in central Berlin, an inner-city area characterised by an agglomeration of arts and creative businesses. Jürgens is able to show - though on the basis of a very small sample (10 in-depth interviews) - that creative businesses in the quarter confirm the relevance of soft location factors (e.g. the atmosphere of the quarter, its image as a lively and creative place) and agglomeration effects for the location quality and that, in addition, the arts scene, mainly the 'off' institutions, plays an important role in giving and stimulating ideas, making the quarter indeed to a specific urban environment of arts and creativity with substantial economic effects.

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7. Culture as the frame of reference for urban and regional studies

Beyond the approaches outlined above, the "cultural turn" has definitely reached urban and regional analysis as well as development studies in the sense that 'culture' is increasingly recognized as the main frame of reference for analysis and planning. It is being treated as the major arena for social evolution and societal struggle - alongside of and beyond "the economic". This has been outlined above with the example of creative milieus and networking.
In Germany at the beginning of the 1990s, a lively discussion about extra-economic influences on regional development was stimulated by a study by Meinhard Miegel and collaborators (1991) on differences in economic culture and work culture in different regions of the country. The authors compared work ethics and collectively held attitudes towards work performance in (peripheral) areas of North and South Germany and their effects on regional economic development. This is taken up again in Hartmut Häussermann's and Walter Siebel's contribution on "culturalisation of regional policy" (1993). In a similar way, "lifestyles" (as a categorisation for subgroups of society) are much more defined by cultural factors than by economic factors. An urban socio-spatial analysis based on such a "lifestyle" approach would also emphasise aspects of cultural quality and change (Helbrecht 1997).
Back to a more limited concept of "culture" in the sense of "arts" but perhaps with wider implications for the study of socio-economic change, recent studies in urban sociology emphasise the arts as a major arena of conflict in society: In the field of "culture" ideologies and lifestyles compete for hegemony. Under the heading "economy of symbols", a critical approach stresses the importance of the use of 'culture' by the ruling classes (or the "growth coalition"): 1) to determine the aesthetics of spaces, public spaces, thus showing its power, 2) to increase the trading value of properties, real estate, by decorating it with culture, and 3) to use the power in and over the built environment to help to define the identity of the ruling class with the means of the built environment, in specific shapes of office buildings, shopping malls, factories etc. (Kirchberg 1998, p. 48f.).
One of Germany's major enterprises, Volkswagen, seems a good example for this recent development in the relationship between culture and the economy, with a new "vitreous factory" in Dresden and with the newly opened "Autostadt" (automobile city) in Wolfsburg, a gigantic mixture of sales department, showroom, information desk and entertainment centre, propagating a corporate culture which aims at integrating the purchasers and drivers of Volkswagens into it. Here, culture is being exploited as the main instrument in a new stage of marketing, one of the essential service tasks in late industrialism at the beginning of the 21st century.
A glance at the other extreme of the socio-spatial ladder also shows, in a very different context, that development without culture seems improbable to achieve: Frahm et al. (1994) emphasise in their extensive survey the role of culture for rural development in theory and practise.

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Heinrichs, Werner, Armin Klein und Peter Bendixen: Kultur- und Stadtentwicklung: kulturelle Potentiale als Image- und Standortfaktoren in Mittelstädten. [Development of culture and of the city: cultural potential a an image and location factor in medium-sized cities]. Ludwigsburg: Wüstenrot-Stiftung, 1999.

Helbrecht, Ilse: Stadt und Lebensstil. Von der Sozialraumanalyse zur Kulturraumanalyse? [Lifestyles in the city: From social area analysis to cultural area analysis?]. In: Die Erde, 128, 1997, pp. 3-16.

Herrmann-Pillath, Carsten: Was ist und wie betriebt man wirtschaftskulturelle Transformationsforschung? [What is and how does one conduct economic-cultural transformation research?].(Wittener Diskussionspapiere; 40). Witten: Universität Witten/Herdecke, Fakultät für Wirtschaftswissenschaft, 1999.

Hilbert, Josef et al. (eds.): Qualifizierte Dienstleistungen: internationale Erfahrungen und Herausforderungen für den Strukturwandel im Ruhrgebiet. [Qualified services: international experience and challenges for structural change in the Ruhr conurbation]. (Dortmunder Beiträge zur Sozial- und Gesellschaftspolitik; 23). Münster: Lit, 1999.

Hummel, Marlies und Cornelia Waldkircher: Wirtschaftliche Entwicklungstrends von Kunst und Kultur. [Economic aspects of the arts and culture].(Schriftenreihe des ifo-Instituts für Wirtschaftsforschung; 132). Berlin: Duncker und Humblot, 1992.

Hummel, Marlies und Karl-Heinz Brodbeck: Längerfristige Wechselwirkungen zwischen kultureller und wirtschaftlicher Entwicklung. [Long-term interdependencies between cultural and economic development]. Berlin: Duncker und Humblot, 1991.

Jürgens, Katrin: Stadträume der Kultur und Kreativität in Berlin. Die Spandauer Vorstadt als Beispiel. Kreative Dienstleistungen und räumliche Interaktion. [Urban spaces of culture and creativity in Berlin: The example of the Spandauer Vorstadt. Creative services and spatial interaction.]. Diplomarbeit. Berlin: Institut für Geographische Wissenschaften der FU, 2000.

Kirchberg, Volker und Albrecht Göschel (eds.): Kultur in der Stadt. Stadtsoziologische Analysen zur Kultur. [Culture and the city. Analyses on culture in urban sociology]. Opladen: Leske + Budrich, 1998.

Kirchberg, Volker: Stadtkultur in der Urban Political Economy. In: Kirchberg, Volker und Albrecht Göschel (eds.): Kultur in der Stadt. Stadtsoziologische Analysen zur Kultur. [Culture and the city. Analyses on culture in urban sociology]. Opladen: Leske + Budrich, 1998, pp. 41-54.
Krätke, Stefan und Renate Borst: Berlin. Metropole zwischen Boom und Krise. Opladen: Leske + Budrich, 2000.

Lackner, Michael und Michael von Werner: der Cultural Turn in den Humanwissenschaften. Area Studies im Auf- oder Abwind des Kulturalismus? [The cultural turn in the humanities. Area studies waxing or waning?].(Schriftenreihe Suchprozesse für innovative Fragestellungen in der Wissenschaft; 2). Bad Homburg: Werner-Reimers-Stiftung, 1999.

Lindner, Rolf: Stadtkultur. [The culture of the city]. In: Häussermann, Hartmut (ed.): Großstadt. Soziologische Stichworte. Opladen: Leske und Budrich, 2nd ed., 2000, pp. 258-264.
Mangold, Klaus (ed.): Dienstleistungen im Zeitalter globaler Märkte: Strategien für eine vernetzte Welt. [Services in the age of global markets: Strategies for a networked world]. Frankfurt: Frankfurter Allgemeine Zeitung, 2000.

Miegel, Meinhard unter Mitwirkung von Reinhard Grünewald und Karl-Dieter Grüske: Wirtschafts- und arbeitskulturelle Unterschiede in Deutschland: zur Wirkung außerökonomischer Faktoren auf die Beschäftigung; eine vergleichende Untersuchung. [Differences in economic and work culture in Germany: the effects of extra-economic factors on employment: a comparative study]. Gütersloh: Verlag Bertelsmann-Stiftung, 1991.

Port Authority of New York and New Jersey. Cultural Assistance Center: The Arts as an industry: their economic importance to the New York - New Jersey metropolitan region. New York, NY: Port Authority of NY & NJ, Cultural Assistance Center, 1983.

Rassem, Mohammed: Mensch und Kultur. [Man and culture]. In: Staatslexikon. Recht, Wirtschaft, Gesellschaft. Freiburg et al.: Herder, 1995, Vol. 3, column 746-757.

Taubmann, Wolfgang und Fredo Behrens: Wirtschaftliche Auswirkungen von Kulturangeboten in Bremen. [Economic impacts of the arts sector in Bremen].(Materialien und Manuskripte. Studiengang Geographie. Universität Bremen; 10). Bremen: Unegional Policy]. In: Geographische Rundschau, 45, 1993, pp. 218-223.

Haubrich-Gebel, Monika: Kultur und Wirtschaft: die Bedeutung der kulturellen Infrastruktur für die Wirtschaft und die Stadtentwicklung; das Beispiel Göttingen. [The arts and the economy: the importance of the cultural infrastructure for the economy and urban development; the example of Göttingen]. (Schriftenreihe des Landschaftsverbandes Südniedersachsen; 5). Hannover: Reichold, 1995.

Heinrichs, Werner, Armin Klein und Peter Bendixen: Kultur- und Stadtentwicklung: kulturelle Potentiale als Image- und Standortfaktoren in Mittelstädten. [Development of culture and of the city: cultural potential a an image and location factor in medium-sized cities]. Ludwigsburg: Wüstenrot-Stiftung, 1999.

Helbrecht, Ilse: Stadt und Lebensstil. Von der Sozialraumanalyse zur Kulturraumanalyse? [Lifestyles in the city: From social area analysis to cultural area analysis?]. In: Die Erde, 128, 1997, pp. 3-16.

Herrmann-Pillath, Carsten: Was ist und wie betriebt man wirtschaftskulturelle Transformationsforschung? [What is and how does one conduct economic-cultural transformation research?].(Wittener Diskussionspapiere; 40). Witten: Universität Witten/Herdecke, Fakultät für Wirtschaftswissenschaft, 1999.

Hilbert, Josef et al. (eds.): Qualifizierte Dienstleistungen: internationale Erfahrungen und Herausforderungen für den Strukturwandel im Ruhrgebiet. [Qualified services: international experience and challenges for structural change in the Ruhr conurbation]. (Dortmunder Beiträge zur Sozial- und Gesellschaftspolitik; 23). Münster: Lit, 1999.

Hummel, Marlies und Cornelia Waldkircher: Wirtschaftliche Entwicklungstrends von Kunst und Kultur. [Economic aspects of the arts and culture].(Schriftenreihe des ifo-Instituts für Wirtschaftsforschung; 132). Berlin: Duncker und Humblot, 1992.

Hummel, Marlies und Karl-Heinz Brodbeck: Längerfristige Wechselwirkungen zwischen kultureller und wirtschaftlicher Entwicklung. [Long-term interdependencies between cultural and economic development]. egional Policy]. In: Geographische Rundschau, 45, 1993, pp. 218-223.

Haubrich-Gebel, Monika: Kultur und Wirtschaft: die Bedeutung der kulturellen Infrastruktur für die Wirtschaft und die Stadtentwicklung; das Beispiel Göttingen. [The arts and the economy: the importance of the cultural infrastructure for the economy and urban development; the example of Göttingen]. (Schriftenreihe des Landschaftsverbandes Südniedersachsen; 5). Hannover: Reichold, 1995.

Heinrichs, Werner, Armin Klein und Peter Bendixen: Kultur- und Stadtentwicklung: kulturelle Potentiale als Image- und Standortfaktoren in Mittelstädten. [Development of culture and of the city: cultural potential a an image and location factor in medium-sized cities]. Ludwigsburg: Wüstenrot-Stiftung, 1999.

Helbrecht, Ilse: Stadt und Lebensstil. Von der Sozialraumanalyse zur Kulturraumanalyse? [Lifestyles in the city: From social area analysis to cultural area analysis?]. In: Die Erde, 128, 1997, pp. 3-16.

Herrmann-Pillath, Carsten: Was ist und wie betriebt man wirtschaftskulturelle Transformationsforschung? [What is and how does one conduct economic-cultural transformation research?].(Wittener Diskussionspapiere; 40). Witten: Universität Witten/Herdecke, Fakultät für Wirtschaftswissenschaft, 1999.

Hilbert, Josef et al. (eds.): Qualifizierte Dienstleistungen: internationale Erfahrungen und Herausforderungen für den Strukturwandel im Ruhrgebiet. [Qualified services: international experience and challenges for structural change in the Ruhr conurbation]. (Dortmunder Beiträge zur Sozial- und Gesellschaftspolitik; 23). Münster: Lit, 1999.

Hummel, Marlies und Cornelia Waldkircher: Wirtschaftliche Entwicklungstrends von Kunst und Kultur. [Economic aspects of the arts and culture].(Schriftenreihe des ifo-Instituts für Wirtschaftsforschung; 132). Berlin: Duncker und Humblot, 1992.

Hummel, Marlies und Karl-Heinz Brodbeck: Längerfristige Wechselwirkungen zwischen kultureller und wirtschaftlicher Entwicklung. [Long-term interdependencies between cultural and economic development]. Berlin: Duncker und Humblot, 1991.

Jürgens, Katrin: Stadträume der Kultur und Kreativität in Berlin. Die Spandauer Vorstadt als Beispiel. Kreative Dienstleistungen und räumliche Interaktion. [Urban spaces of culture and creativity in Berlin: The example of the Spandauer Vorstadt. Creative services and spatial interaction.]. Diplomarbeit. Berlin: Institut für Geographische Wissenschaften der FU, 2000.

Kirchberg, Volker und Albrecht Göschel (eds.): Kultur in der Stadt. Stadtsoziologische Analysen zur Kultur. [Culture and the city. Analyses on culture in urban sociology]. Opladen: Leske + Budrich, 1998.

Kirchberg, Volker: Stadtkultur in der Urban Political Economy. In: Kirchberg, Volker und Albrecht Göschel (eds.): Kultur in der Stadt. Stadtsoziologische Analysen zur Kultur. [Culture and the city. Analyses on culture in urban sociology]. Opladen: Leske + Budrich, 1998, pp. 41-54.
Krätke, Stefan und Renate Borst: Berlin. Metropole zwischen Boom und Krise. Opladen: Leske + Budrich, 2000.

Lackner, Michael und Michael von Werner: der Cultural Turn in den Humanwissenschaften. Area Studies im Auf- oder Abwind des Kulturalismus? [The cultural turn in the humanities. Area studies waxing or waning?].(Schriftenreihe Suchprozesse für innovative Fragestellungen in der Wissenschaft; 2). Bad Homburg: Werner-Reimers-Stiftung, 1999.

Lindner, Rolf: Stadtkultur. [The culture of the city]. In: Häussermann, Hartmut (ed.): Großstadt. Soziologische Stichworte. Opladen: Leske und Budrich, 2nd ed., 2000, pp. 258-264.
Mangold, Klaus (ed.): Dienstleistungen im Zeitalter globaler Märkte: Strategien für eine vernetzte Welt. [Services in the age of global markets: Strategies for a networked world]. Frankfurt: Frankfurter Allgemeine Zeitung, 2000.

Miegel, Meinhard unter Mitwirkung von Reinhard Grünewald und Karl-Dieter Grüske: Wirtschafts- und arbeitskulturelle Unterschiede in Deutschland: zur Wirkung außerökonomischer Faktoren auf die Beschäftigung; eine vergleichende Untersuchung. [Differences in economic and work culture in Germany: the effects of extra-economic factors on employment: a comparative study]. Gütersloh: Verlag Bertelsmann-Stiftung, 1991.

Port Authority of New York and New Jersey. Cultural Assistance Center: The Arts as an industry: their economic importance to the New York - New Jersey metropolitan region. New York, NY: Port Authority of NY & NJ, Cultural Assistance Center, 1983.

Rassem, Mohammed: Mensch und Kultur. [Man and culture]. In: Staatslexikon. Recht, Wirtschaft, Gesellschaft. Freiburg et al.: Herder, 1995, Vol. 3, column 746-757.

Taubmann, Wolfgang und Fredo Behrens: Wirtschaftliche Auswirkungen von Kulturangeboten in Bremen. [Economic impacts of the arts sector in Bremen].(Materialien und Manuskripte. Studiengang Geographie. Universität Bremen; 10). Bremen: Universität, 1986.

Wagner, Gert: Einige Bemerkungen zur Diskussion einer "Dienstleistungslücke" in (West)Deutschland. [Some remarks on the "service gap" discussion in (West) Germany]. In: Arbeitsmarkt: Tagungsband zum Workshop des Arbeitskreises Berlin-Brandenburgischer Wirtschaftswissenschaftler im April 1998 in Berlin. (Beihefte der Konjunkturpolitik; 48). Berlin: Duncker & Humblot, 1999, pp. 77-92.

Wimmer, Andreas: Kultur. Zur Reformulierung eines sozialanthropologischen Grundbegriffs. [Culture. Reformulation of a fundamental concept in Social Anthropology]. In: Kölner Zeitschrift für Soziologie und Sozialpsychologie, 48, 1996, pp. 401-425.

Zukin, Sharon: The Cultures of Cities. Oxford et al: Blackwell, 1995.

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