Culture and economics have long been considered as an odd pair. Economics, has long been considered a threat to culture, something that that would ‘taint’ it and threaten its essence. Still, economics can offer a different approach to the cultural sector that might actually be helpful in supporting it instead of undermining it. Cultural economics could try to solve some of the problems of the sector and eventually guarantee its own survival.

In fact, Baumol and Bowen’s 1966 book ‘Performing arts- The economic dilemma’, referred to as the founding text of cultural economics, provided the justification for public support to orchestras, hence, giving these cultural organisations the tools to advocate for public monies.

Since its origin, cultural economics has developed in terms of approaches used (welfare economics, industrial organisation, etc.) as well as sectors analysed. Public intervention and, thus, the rationale behind it and the tools for its implementation; the art market and its characteristics compared to other markets; the peculiarities of artists’ career; the economics of cultural heritage and museums; have occupied most of the attention of cultural economists who underlined the role of gatekeepers in the cultural sector and used the term supply-induced-demand to refer to the specificities of the cultural sector. An international association (Association Cultural Economics International - ACEI) brings together scholars in the sector and organises a biannual conference where they exchange the results of their research.

The evolution of the notion of culture, the shift of focus towards the cultural and creative industries, and the financial crisis are all elements that have stimulated the further evolution of cultural economics. The analysis of cultural policies derives from the analysis of public intervention in the cultural sector. Increased attention on accountability within cultural institutions (and institutions using public funds in general) followed by the reduction of public funding led to analyse the performance of cultural institutions, the organisation of cultural policies, and the (re)organisation of cultural policies, providing arguments to advocate for public support to the cultural sector.

In 2001, Blaug indicated that cultural economics was still focusing on the ‘most traditional sectors’ (performing arts, cultural heritage, visual arts, the art market, broadcasting) somehow oblivious of the changes that were taking place in the cultural sector. The development of the concept of cultural and creative industries; the effects of digitisation and, especially, internet; the role of information; the appearance of new intermediaries, new business models and new distribution channel; the importance of copyright profoundly transformed the cultural sector. All these changes stimulated a further development of cultural economics to tackle the new issues that followed.

The analysis is, then, constantly evolving, though a persistent motive has been that of finding ways to support culture. The continuous evolution that has characterised cultural economics, since its origin, shows its capacity to follow what happens in society, and the attempt to provide insights that can improve the ‘state of the arts’.

The recent attention paid to crafts shows this capacity. This sector is receiving growing attention, the Do It Yourself (DIY) movement as well as the focus on craft within policies for urban (re)generation and economic development seem to show that craft is also an important sector that can stimulate cultural but also social and economic development.

Anna Mignosa is Researcher and Lecturer at Erasmus University Rotterdam, the Netherlands, and the University of Catania, Italy. She is the Co-Editor of the upcoming A Cultural Economic Analysis of Craft, publishing Autumn 2018.