The Rise and Fall of the Concept of The Experience Economy in the Local Economic Development of Denmark

Abstract

This article discusses the evolution of the concept of “The Experience Economy” (TEE) in the Danish local economic policy. The term is rarely known worldwide; however, it has become quite popular among the Danes and other Scandinavians. Its origin comes from the American business-marketing field in the late 1990s, while in Denmark, it evolved as a multifaceted idea with notable effects for economic development at the local level. The concept is related to the cultural or creative economy, but in the Danish case, it became more diffuse. This article does not intend to be a critique of these two lines, nor to tourist attractions, which are also linked to TEE. However, it criticizes the implementation of an unorthodox idea to LED, even though it may have useful principles to other disciplines. This article reflects the line of recent research which has questioned its applications in LED. Local governments have supported this strategy because of the national government's key role. Also, academics and consultants contributed to the process. The article also investigates the reasons Denmark had for developing the concept of TEE in Danish local planning and development.

Notes

Thanks to Birgitte Gregersen, Phil Cooke, Søren Kerndrup, Tim Richardson, Trine Bille, Jesper L. Christensen, Isaac Arthur, Rikke Krogh and Kirsten Hansen for their input. I'm also grateful for the comments of two anonymous referees. An earlier version of this paper was presented at “The experience turn in local development and planning” Regional Studies Workshop, Aalborg, 16–17 September 2010.

Another strong critique of TEE strategy has come from the architect Lasse Andersson in his recent PhD thesis from Aalborg University, which strongly questioned the substantial local expenditures on “prestige lighthouses” and the “experience economy [projects] that only survive as long as the hardworking public servants feed them money and push them forward”.

The UK, the Netherlands, Finland and Sweden have also carried out significant research on the TEE concept. The British have mostly focused on tourism. The Dutch have broadened the concept to the fields of business literature and culture. Sweden has pursued a similar route as their neighbours the Danes, using it primarily in the fields of planning and economic development. Finland has applied a mixed approach.

It has been checked that there is not a geographical bias of the software as it has been retrieved with analogous results in Berkeley, CA and Aalborg, Denmark.

This classification is provided by Scholar. Note that the software categorizes “Business, Finance & Economics” separated from the Social Sciences.

Several of these institutions even have the “experience” term in their names. When recently questioning one employee about this, she replied that everything started in 2005 and that “the name came out of a brainstorming session when the term experience economy wasn't a buzzword”. These new centres responsible for promoting TEE have received well over 1 hundred million DKK for their activities all across Denmark. Due to space constraints, this cannot be detailed.

Much of the money has been directed by Vækstfora (Growth Forums). These are public organizations in each Danish region formed by actors from the public and private sectors. Their purpose is regional development.

In the 2009 local elections, the Mayor was replaced after 12 years leaving a troubled local budget.

The other actors promoting TEE come from the private sector, which plays a crucial role in the different governments. According to key academics, some companies have had an agenda to influence academics through funding.

Danish local governments decided to invest heavily in performing acts to purposely attract the creative class. Ironically, this is the opposite of what the work of Florida (2002) in the US has suggested. He argued “cities across the country have spent countless billions of dollars” on [questionable] things such as “professional sport teams, museums, the symphony, opera, ballet and other things [in order] to lure people and firms” (Florida, 2002, p. 259). However, in Denmark, such activities are considered to be the core of TEE.

For example, in the sentence, “This old lady is wise because of her life experience” (result of learning, “erfaring” in Danish), it is different from “That concert was a great experience!” (an exciting adventure or event, “oplevelse” in Danish). The latter is the root of TEE or “Oplevelsesøkonomien”.