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Artivate: A Journal of Entrepreneurship in the Arts  Volume 4, Issue 2 
http://artivate.org  pp. 33-49 
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Copyright © 2015, the author      
 
 

WHAT IF HEWLETT AND PACKARD HAD STARTED A BAND INSTEAD?  
AN EXAMINATION OF A MUSIC SCENE AS ECONOMIC CLUSTER 
Michael Seman, University of North Texas 

 
Abstract 

A growing area of discourse in urban economics is the value of artistic production and its role in 
economic development theory. One arts subsector that has received little attention is popular 
music. Prior research tangentially acknowledges that music scenes function as economic clusters, 
but little detailing of their dynamics as such exists. The bulk of attention is paid to how these 
scenes operate in the framework of the broader music industry, not how they contribute to their 
surrounding urban economic landscapes. This paper uses Michael Porter’s economic cluster 
theory to examine Denton, Texas’ music scene. Findings point to the scene operating as an 
economic cluster as defined by Porter in addition to catalyzing economic and community 
development. Results address the existing gap in research leaving the economic value of music 
scenes underexplored and help detail the necessary conditions for a music scene to develop. 
 

Keywords 
Urban, Economic, Cluster, Music, Scene, Entrepreneurship 
 

Introduction 
A growing area of discourse in urban economics is the value of artistic production and its 

role in current economic development theory (Currid, 2009). One arts subsector that has received 
little attention in this discourse is popular music. Of specific interest are music scenes – the 
spatially-based cultural agglomerations of human and physical capital that include musicians, 
consumers, entrepreneurs, technicians, venues, and studios all working together (often in a 
volunteer, “Do-It-Yourself” or “DIY” nature) to facilitate the creation and performance of music 
(Bennett & Peterson, 2004; Connell & Gibson, 2003; Florida & Jackson, 2010). 

Music scenes are recognized as part of the urban economy by some authors, but only 
superficially as economic clusters with emphasis placed on the roles those clusters play in the 
larger framework of the music industry (Florida & Jackson, 2010; Florida, Mellander, & 
Stolarick, 2010; Lin, 2014; Scott, 1999). This practice obscures the scale and scope of a music 
scene’s role in its surrounding urban economic landscape by reducing it to an unexamined milieu 
contributing product to a larger industry. Other authors examine the positive externalities 
generated by music scenes, placing them tangentially into the urban economic development 
discourse (Florida, 2002; Grant, Haggett, & Morton, 2009; Lloyd, 2006; Seman, 2010); however, 
there still lacks a thorough understanding of how music scenes operate in the urban economy. 
Observing a music scene through the lens of existing economic cluster theory and detailing scene 
participants’ interactions would help one gain that understanding. 

This paper seeks to answer the question; are music scenes economic clusters as defined 
by Porter (2000)? Answering this question will further detail how music scenes operate in the 
urban economy, give policymakers insight on their value as catalysts, and help fill a research gap 
that has left music scenes a nearly nascent presence in the discourse concerning urban economics 
and cultural production. To answer the research question, this paper first presents a literature 
review detailing the pertinent points of economic clustering and music scenes. Next, the case 
study location is detailed and the research methodology is described. Analysis and discussion of 



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the research findings is then offered and is followed with suggestions for further study and a 
conclusion. 

 
From Growth Models to Music Scenes 

The end of the 20th century saw a much different national economy in the United States 
than the one at the start of the century. With this change came a rethinking of how to construct 
models explaining regional economic growth. Weber (1929/1968), Harris (1954), Isard, (1956) 
and others offer that the competitive advantage of firms is derived from economies of scale, 
resource availability, minimization of input costs, transport access, and the geographic aspects of 
agglomerations. These attributes still account for some aspects of growth, but by the end of the 
century newer models emerged. Romer (1986) and Lucas (1988) argue the variables of educated, 
highly skilled human capital and technology are better at explaining why certain regions are 
more competitive than others in a time of rapid globalization (Fujita & Thisse, 1996; Glaeser, 
1994) while Krugman (1991) focuses on population concentrations and the tendency of 
specialized labor and firms to co-locate for economic security as reasons for regional success. 

Drawing from both sets of models, Porter (2000) suggests regional economic growth is 
the result of “economic clusters” capitalizing on “the effect of location on competition” 
manifested in the “four interrelated influences” of local context, factors/inputs, related and 
supporting industries, and demand conditions. These clusters give regions competitive 
advantages in productivity, innovation, and new business formation (2000, p. 19). Porter defines 
economic clusters as: “…geographic concentrations of interconnected companies, specialized 
suppliers, service providers, firms in related industries, and associated institutions (e.g. 
universities, standards agencies, trade associations) in a particular field that compete but also 
cooperate” (2000, p. 15).   

Economic clusters are driven by dense networks of educated, highly skilled human 
capital leveraging technology and creating knowledge spillovers through face-to-face contact – 
what Storper and Venables (2004) describe as “buzz.” Porter’s observation of this activity as 
integral to the innovation process builds on the work of Marshall (1890/1990) and Jacobs (1970, 
1961/1992) who suggest similar concentrations breed atmospheres of innovation.  

The translation of these regional growth theories into current economic development 
practices manifests in strategies aimed at attracting and retaining educated, highly skilled human 
capital which will provide established firms with innovative ideas and practices in addition to 
starting new firms (Clark, 2004; Currid, 2009; Florida, 2002; Glaeser, Kolko, & Saiz, 2001; 
Mather, 1999). Artistic production is placed into this urban economic framework as, in addition 
to often contributing to a city’s brand, redevelopment efforts, and industrial growth, the milieu 
surrounding artistic production also functions as an amenity attractive to this desired human 
capital (Currid, 2009; Florida, 2002; Lloyd, 2006; Scott, 2000; Seman, 2010). However, the 
clustering dynamics of artistic production have not been specifically detailed through the lens of 
Porter’s (2000) work. 

Music is a subsector of artistic production that also has a surrounding creative milieu, or 
“music scene.” These scenes are attractive to human capital and capable of economic 
externalities (Seman, 2010), but when framed in the urban economy for analysis, it is often with 
emphasis on the roles they play in the larger framework of the music industry or as mere 
glimpses into a much larger and denser network of cultural production in a city’s economy 
(Currid, 2007; Florida & Jackson, 2010; Florida, Mellander, & Stolarick, 2010; Scott, 1999; 
Seman, 2010). The detailing that does exist speaks to them embodying many characteristics of 



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economic clustering, but not in a thorough and concise manner. At the same time, the concept of 
bands as firms is emerging with Snow (2010) drawing comparison between high-tech start-up 
firms and bands in terms of operational dynamics and business lifecycles while Blackwell, 
Stephan, and Stephan (2004) and Guiney and Zheng (2012) suggest bands conduct business 
much like more traditional, established firms in other industries. 

Economic cluster traits are suggested in some analyses of music scenes. Scott (1999) 
finds that a dense, localized geographic location offers music scene participants “a relatively 
high probability of finding just the right kind of input within easy access at just the right time” 
leading many to play “important roles at many different stages of the production process” (Scott, 
1999, p. 1971/1974). Like Silicon Valley, Scott (1999, p. 1975) also offers that a music scene 
may be “sustained by educational and training institutions.”1 Straw (2005) places emphasis on 
the social aspect of the dense networks of scene participants noting that “scenes emerge from the 
excesses of sociability that surround the pursuit of interests” and finds the “lines between 
professional and social activities are blurred, as each activity becomes the alibi for the other” 
(Straw, 2005, p. 412/413). Lines are also blurred as scene members often act simultaneously as 
cultural producers, facilitators, and consumers (Smith & Gillett, 2014).  

Analysis of the fertile music scene in Athens, Georgia during the late 1970s and 1980s 
(which spawned bands such as the B-52’s and REM) offers further itemizing of music scene 
components and how they may operate in a manner evocative of economic clustering. Jipson 
(1994) details the core components of Athens’ scene and notes it offers a density of potential 
audience members and performers, a low cost of living, several places to perform with lax 
booking policies including a plethora of house parties, a recording studio, a well-respected art 
department attracting a continual supply of students turned musicians focused on creative 
innovation, and a geographically and socially tight-knit community of scene participants. In 
addition, Jipson (1994) stresses there was a lack of competition amongst bands, and a decided 
bent towards having fun while playing over achieving technical proficiency. 

Florida and Jackson (2010) consider the history of music scenes in the United States and 
detail the development of smaller, “independent” (or “indie”) music scenes in the 1980s located 
outside of the “major centers” typically thought of for cultural production. These indie or DIY 
scenes are built upon networks organically established by the self-empowering punk rock 
movement and are often located in college towns where “music talent is located, students have 
free time to form and play in musical acts, and there is considerable demand for live music 
performance” (Azerrad, 2001; Florida, Mellander, & Stolarick, 2010, p. 786; Seman, 2010). 

 
Case Study : Denton, Texas 

Denton, Texas’s music scene was selected as a case study for this research as it was 
easily accessible and vibrant. Denton is a city approximately 40 miles north of Dallas with two 
universities, a population of just over 110,000, and a thriving music scene with growing national 
and global recognition (Beehner, 2008; Rogers, 2007; Seman, 2012; Simmons, 2010; Sims, 
2008). Denton’s music scene is estimated to encompass “100 or more acts” at any given time and 
is “eclectic and artistically ambitious, with a high degree of musicianship and a strong DIY 
ethic” (Sims, 2008). In addition, my eight-year history as participant in the music scene allowed 
for unparalleled access to contacts and insight potentially unavailable in another geographic area. 
                                                
1  It should be noted that while Scott (1999) states that he is analyzing U.S. recorded music industrial clusters – 
 



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O’Connor (2002) suggests that not all music scenes are carbon copies of each other and Denton’s 
scene is idiosyncratic in a number of ways. It is highly concentrated and has an oceanic depth 
and breadth with artists and bands mining a wide variety of genres. Collections of scene 
members form “micro” scenes around genres such as experimental noise, Americana, and punk, 
yet still often interact within the broader scene and self-identify as part of it supporting Straw’s 
concept that music scenes are areas of “multiple musical practices” (R. Gomez, personal 
communication, January 2, 2013; R. Buttrum, personal communication, January 13, 2013; Straw 
2001, p. 248). 

Another trait not found in many other music scenes in cities of similar population size is 
the routine national and international recognition for the scene’s participants. Several bands such 
as Midlake, Centro-matic, Slobberbone, Baptist Generals, Sarah Jaffe, Brave Combo, and Lift to 
Experience enjoy or have enjoyed widespread success, in some cases selling more than 100,000 
copies of a release globally, licensing songs to commercials, television, and film, appearing on 
nationally broadcast late night television shows, and playing to capacity crowds in venues and 
theaters in the United States and internationally. There are also a number of musicians such as 
Earl Harvin and Matt Chamberlain who participated in Denton’s music scene for several years 
then left to perform and record with various bands with international profiles (Head, 2011; Liles, 
2009; Tama, 2006). 
 
Methodology 

Porter (1998, p. 79) suggests that to fully understand economic clusters, one must detail 
the “many important actors and relationships in competition.” To capture the dynamics of the 
“important actors and relationships” driving Denton’s music scene, a convenience sample was 
constructed in a manner similar to Becker (1963), whose participatory immersion in Chicago’s 
jazz music scene allowed him direct access to the subjects he sought to study. Due to my 
participatory experience in the music scene as well as the literature reviewed in previous 
sections, certain individuals were specifically targeted in the music scene as sample participants 
thus defining the convenience sample with an undercurrent of purposive sampling. The final 
sample consisted of 25 individuals including musicians, venue owners, promoters, label owners, 
booking agents, and City representatives – or some combination thereof. Perceptions of the scene 
were captured from participants both established and emerging and from across a wide range of 
musical genres in order to have a sample “representative of the range of points of view” (Rubin 
and Rubin, 1995, p. 66). 

A series of “structured” and “semi-structured” in-person interviews (Bernard 1988) were 
conducted over a two-month period. Interviews lasted from 30 to 90 minutes and were 
conversational in nature. A survey instrument was used with questions both subjective and 
factual included. The interviews were transcribed and analysis included creating theoretical 
memos to help spot trends and themes in the information gathered. These extended notes helped 
when comparing the results outwardly to the literature initially reviewed as well as to the other 
qualitative data accumulated during interviews, including secondary sources such as books, 
magazines, newspapers, websites, and blogs. Both methods of continual comparison or “analytic 
induction” allowed for trends and “interesting relationships” to emerge (Bernard 1988; Crang 
2005).  

Using Porter’s cluster theory framework to examine Denton’s music scene was at times 
challenging as sometimes even a nuanced understanding of both the theory and the dynamics of 
the music scene were not enough to help connect the two via conversation with scene members 



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during the interview process. Much of this disconnect is due to the theory not being designed to 
describe cultural activity where firms – in this case, mainly bands – are far less capitalized and 
often not as singularly focused on business-oriented success. However, when the responses of 
music scene members are considered holistically as a group and augmented by research 
observations, Porter’s theory is adequately detailed, albeit as though looking through a telescope 
backwards. In essence, as described in the next section, Denton’s music scene is sort of like 
Silicon Valley, but different. 
 
Results 
A Scene of Productivity. Porter (2000) suggests certain elements regarding local context, 
factors/inputs, related and supporting industries, and demand conditions must be in place and 
interact within a framework for a location to foster a successful cluster with a competitive 
advantage in productivity, innovation, and new business formation. In terms of productivity, 
Porter offers that clusters give a location productivity advantages in five ways via “access to 
specialized inputs and employees,” “access to information,” “complementarities,” “access to 
institutions and public goods,” and “incentives and performance measurement” (Porter, 2000, p. 
22/23). Denton’s music scene capitalizes on all five with resulting productivity gains. What 
drives productivity in Denton’s music scene is the institution, the University of North Texas 
(UNT), but not in the manner that would invoke comparisons to Stanford and Silicon Valley. 
UNT’s College of Music is one of the consistently top-ranked post-secondary music schools in 
the country, but it does not actively engage the music scene that exists in the city. Glen Farris, a 
musician and production manager for the Dallas-Ft. Worth booking agency Spune stated that, 
“The schism between UNT music and the rest of Denton’s music has been massive and wide...” 
This sentiment was echoed by the majority of people interviewed. This stands in stark contrast to 
Stanford’s engineering department, which fostered the development of Silicon Valley (Saxenian, 
1996). 

The majority of scene participants interviewed who moved to Denton to attend UNT did 
so to enroll in programs other than music. The significance of this detail is multi-tiered. 
“Employees” with specialized music knowledge from UNT’s College of Music definitely form 
bands, but there are also students in the Department of Radio, Television, and Film (RTVF) and 
the College of Visual Arts and Design (CVAD) programs who also form bands in addition to 
using their specialized knowledge in fields such as photography, graphic design, and filmmaking 
to provide services and inputs to existing bands. Of the ten participants that attended UNT in 
non-music majors, all of them lend their specialized knowledge to the music scene while in firms 
or as freelancers, with eight of them also participating as active musicians. This situation 
supports Scott’s (1999, p. 1975) observation that a music scene may be “sustained by educational 
and training institutions that focus on local, agglomeration-specific needs” and is not without 
precedent. Jipson’s (1994) analysis of the commercially and critically successful Athens, 
Georgia music scene of the late 1970s and 1980s also emphasized the University of Georgia’s art 
program as an important structural element. Before that, the British Invasion of the 1960s saw 
bands like the Beatles, The Who, Rolling Stones, and The Kinks populated by art students (Kitts, 
2008). 

An externality of having a large pool of human capital with specialized training (official 
or not) in the creation and performance of music is the increased availability of “specialized 
inputs” in the form of musical equipment. Porter (2000) describes this phenomenon, stating that 
“the presence of a cluster not only increases the demand for specialized inputs but also increases 



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their supply” (Porter, 2000, p. 22). With four music instrument stores and two pawn shops 
specifically catering to musicians in the city, there is a lot of musical equipment exchanging 
hands. Rob Buttrum, bassist for the touring doom metal band Terminator 2, Out of Body Records 
label owner, and experimental noise performer in projects such as Vaults of Zin and Filth noted 
the selection and quantity of musical equipment found in Denton rivals that of a much larger 
city.  

The concentration of scene members with specialized knowledge also helps raise 
productivity in Denton’s music scene by fostering an atmosphere of knowledge allowing for 
“access to information.” Music scene participants painted a picture of a concentration so great 
that it permeates the entire city facilitating the “face-to-face” contact Storper and Venables 
(2004) suggests drives a regional economy. Locations as diverse as venues, coffeehouses, 
bookstores, record stores, churches, house parties, the UNT campus, and the “University Kroger” 
grocery store are all places where conversations are held. Kyle LaValley, the creative director of 
the 35 Denton music festival, highlighted this scenario noting, “I think it’s pretty much 
unavoidable to go anywhere in Denton without running into a musician” (personal 
communication, January 2, 2013). 

The locations where concentrations of scene members facilitate knowledge transfer 
updates Jacobs’ (1961/1992) notion that such activity only happens in concentrated urban areas 
facilitated by foot traffic and the “sidewalk ballet” (Jacobs, 1961/1992, p. 153). While many of 
the locations where knowledge transfer does take place are within the walkable downtown core 
of the city, others are generally accessible only by driving. Denton’s music scene, like Los 
Angeles’ film cluster and Silicon Valley’s hi-tech cluster, successfully incorporates creativity, 
knowledge spillovers, and information transfer in areas both walkable and primarily accessible 
by car. 

Knowledge exchanged ranges from technical and business details – often concerning 
“new technological, operating, or delivery possibilities” for music that Porter (2000, p. 23) 
suggests facilitates innovation – to opportunities outside of the scene. Participants offered that 
the existing pool of information is a “free-flowing exchange” with everything “a phone call 
away, from knowledge to a loaner amp.” One musician stated that “when someone needs a job, 
everyone sort of... helps,” adding that she knows several people who received jobs outside of the 
music scene because of connections established inside of it – a common theme amongst those 
interviewed (personal communication, December 28, 2012). Larger questions of business 
development and the dynamics of “buyers” outside of the scene were also addressed. Eric Pulido, 
guitarist in Midlake and an owner of Paschall Bar offered that when his band was ready to tour 
the country there were people in Denton’s music scene willing to share information on how to 
undertake the process; and, in turn, Pulido has shared information he’s gained from touring to 
help others. 

These exchanges answer the question posed by Storper and Venables (2004, p. 353) of 
what comprises the “interactions” of “agents” in a particular “milieu.” This no-cost knowledge 
exchange also helps younger firms better position themselves to address the marketplace outside 
of Denton’s music scene, while in turn strengthening the locational competitive advantage of the 
scene. This ease of information access is not surprising in light of the fact that the majority of the 
scene members felt there was a low barrier of entry into the scene which Porter (2000) suggests 
is necessary to foster productivity. 

The economic and geographic clustering of firms and individuals also breeds opportunity 
for complementarities. Denton’s music scene offers firms the ability to capitalize on the 



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“efficiencies” in “joint marketing” while complementarities emerging through the leveraging of 
linkages also exists (Porter, 2000, 22). Bands working together to book shows in order to cross-
pollinate and increase their audiences is a common practice amongst those interviewed. Musician 
and studio owner Matthew Barnhart explained, “...you’re using the additional gravitational force 
of all these people together to promote generally what you’re doing in a way you couldn’t do if 
you were just trying to reach out yourself… that’s the way scenes work” (personal 
communication, December 26, 2012). 

Denton venues willingly participate in crafting multi-band evenings and day-long 
festivals, often host benefits, and work with local record labels for specialized “album release” 
nights. Joint branding by firms within the scene extends across industrial sectors. The venue 
Rubber Gloves has worked with local screen printing company Pan Ector and record label 
Gutterth Records to co-brand an annual evening of live screen printing and music. Video 
synthesizer designer LZX Industries routinely taps Denton bands for songs to accompany their 
promotional videos. These activities also speak to efficiencies gained by cluster participants 
leveraging linkages in a complimentary fashion. 

Like Scott (2000), Currid (2007), and Molotch (2002), who note that commodification of 
place through cultural production is a powerful branding agent for the items produced, Porter 
(2000) suggests complementary marketing efforts enhance the reputation of a cluster, helping to 
brand it and the location it inhabits, increasing productivity and adding to the competitive 
advantage of the location. The joint marketing activities in Denton’s music scene have helped 
developed bands who in turn have branded Denton’s music scene internationally as a nexus of 
high-quality musical creativity and production. “I’ve recorded with guys because of the 
reputation of Denton,” musician Scott Danbom claimed regarding his work as a session player 
(personal communication, January 4, 2013). Midlake drummer and Redwood Studios co-owner 
McKenzie Smith offered, “There are a lot of successful bands from this area...there’s a reputation 
here” (personal communication, January 8, 2013). 

Porter (2000) suggests that successful economic clusters have productivity benefits 
through incentives and performance measurement driven by competition amongst firms. Clusters 
that are not advanced have little local rivalry, and what does exist is based on imitation, not 
innovation, with imports providing the competition. Placing music scenes in this framework of 
competition yields mixed results. Jipson’s (1994) structural analysis of Athens’ prolific music 
scene points to there being no competition amongst firms. When asked if the Denton’s music 
scene was competitive, 61% of scene participants confirmed that it wasn’t while 39% replied that 
it was. Of the confirmations, 89% tempered their responses observations that the competition 
was “positive,” “healthy,” “friendly,” or marked by equally amounts of cooperation, being a 
“mix.” Barnhart suggested the scene has advanced to where suppliers and the market rely on 
innovation for productivity gains; there is cooperation amongst suppliers with competition 
directed inward, focused on innovation to differentiate products. He stated regarding bands, 
“We're not talking about cover bands trying to play in bars for uninterested people. Your product 
is not that you're a band – the product is the art you make. And you're only competing with 
yourself in that regard” (personal communication, December 26, 2012).  

Demand conditions in Denton are equally as dichotomous. The presence of UNT’s 
College of Music in addition to the plethora of musicians enrolled in the RTVF and CVAD 
programs combines to saturate most audiences with what Porter (2000) would label as 
“sophisticated and demanding home customers” (Porter, 2000, 21). Musician Rob Gomez 
detailed how this audience facilitates innovation, stating, “You are not going to get up there and 



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just play some middle-of-the-road rock and roll… you have to be a little bit more creative.” He 
added, “It’s a tough audience here” (personal communication, January 2, 2013). Others 
interviewed noted audiences are “reverent,” “focused,” and “sophisticated” with a heightened 
level of expectation in music performance resulting in “a higher standard” and “a lot to live up 
to” when playing a show in Denton. At the same time, several scene participants noted that 
audiences are willing to play a role in fostering experiments in innovation as well as support 
bands that may be having an off-night. Rob Buttrum observed that a Denton audience will be 
supportive and accepting if a band is giving their all and “having a blast” while performing even 
if they are still developing their sound (personal communication, January 13, 2013). 
 
Living Rooms of Innovation and Garages of Incubation. One item that was repeatedly 
identified as integral to the innovation process and new business formation is the abundance of 
inexpensive rental housing in Denton. The primary function of this housing is to meet the 
demand of students looking for off-campus residences while attending college; however, an 
unintended consequence of this inexpensive housing is it facilitates a developmental eco-system 
for firms in the scene. Due to its abundance and affordability, one could argue this housing 
embodies traits similar to a “public good” that Porter (2000, p. 22/23) notes must be accessible 
for a cluster to develop a competitive advantage. According to participants, it is not uncommon 
for a band to live and rehearse in a rental home, record in the living room of a friend’s, have T-
shirts printed in the garage of someone else’s, shoot a video in a different garage, and play shows 
hosted in any number of the branded, quasi-venues that scene members operate in their rental 
homes. Midlake’s Smith noted that Denton, “is still affordable… people can rent a house, set-up 
a studio, and work on an album. A lot of bands rent houses together – that’s what we did” 
(January 8, 2013).  

Inexpensive rental housing allowed the band Midlake to develop as a firm and innovate, 
developing successful products in the form of albums and live shows. These products succeeded 
in national and international market spaces allowing them to diversify both as a firm and 
individuals, subsequently opening a bar (Figure 1), two recording studios, and a commercial 
music company in Denton. Midlake also takes a hands-on role in the development of fledgling 
artists such as Sarah Jaffe, a role which Porter (2000) notes is common in economic clusters (E. 
Pulido, personal communication, January 8, 2013; M. Smith, personal communication, January 
8, 2013).  

 
 
 
 
 
 
 
 
 
 
 
 
 
 



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Figure 1. Pachall Bar Interior. Photo: marcusjuniuslaws.com by permission. 
 
Inexpensive rental housing combined with the demand for support services by bands 

helps incubate new firms and foster innovation outside of the music sector in differing ways, 
mirroring Porter’s (2000) suggestion that key to innovation in a cluster are firms that have the 
ability to “experiment at lower cost or delay large commitments until there is greater assurance 
that a new product, process, or service will pan out” (p. 22-23) and Jacobs insight that “new 
ideas must use old buildings” (1961/1992, p. 188). Amandus Studios was founded by graduates 
of UNT’s RTVF program who, while playing in bands, started shooting videos in their rental 
house for other bands in the scene. They eventually leveraged their talents and contacts in the 
scene to secure video production work for events like the 35 Denton music festival, then larger 
clients in Dallas and Oklahoma (C. Crosswhite, personal communication, December 27, 2012).   

In addition to production space, Amandus Studios co-founder Charles Crosswhite found 
the low cost of housing beneficial in terms of networking, reasoning that “The more money you 
are not spending on rent means the more money you have to socialize which means making 
connections, the more money you have to spend on equipment, which is your life.” This in part 
supports Currid’s (2009) analysis of cultural production in New York City where social 
networking is a primary driver of the creative production process from finding collaborators to 
securing project-employment. 

Pan Ector Industries is a screen printing and design firm born in the garage of the house 
several company founders lived in while finishing art degrees at UNT and designing shirts for 
bands on the side. Co-owner Michael Little welcomed having space to develop the business with 
low- to no-overhead, but as they secured contracts from government agencies and private 
industry alike it “had gotten to the point where it sucked living with the business” (personal 
communication, January 23, 2013). The firm has since moved to a commercial space. Pan Ector 
Industries success is also due to the “juxtaposition of firms in related industries” enabling them 
to “perceive new buyer needs” while helping the firm in “perceiving new technological, 
operating, or delivery possibilities” (Porter, 2000, p. 23). While still art students, the founders of 
the firm tested the concept of “live printing” at a concert they co-hosted with a Denton promoter 
and venue and discovered that buyers liked having merchandise made to their specifications on-
site. They leveraged this experience beyond an annual night of local bands to a continual stream 
of festivals and outdoor events throughout the Dallas-Ft. Worth metro area resulting in a 
significant revenue stream (M. Little, personal communication, January 23, 2013). 

House venues in Denton also offer a chance for career development. Natalie Dávila made 
the jump from booking and operating the long-running Denton house venue, the “Majestic 
Dwelling of DOOM,” in her basement (Figure 2) to being hired as 35 Denton’s Director of 
Programming (Rodrigue, 2012). Farris sees house venues as “the spring training of the scene,” 
and noted that, “there are all these roles that need to be filled. Someone’s got to run the PA; 
someone has to manage the stage” (Personal communication, January 11, 2013). For Buttrum, 
running the House of Tinnitus in his living room helped establish a national network of social 
and professional contacts facilitating his national touring efforts with the band Terminator 2 (R. 
Buttrum, personal communication, January 13, 2013).  



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Figure 2. Majestic Dwelling of DOOM. Photo: Natalie Dávila by permission. 
 
 
It should be noted that while this paper suggests inexpensive rental housing is a necessary 

condition for a music scene to develop as an economic cluster, it is not a sufficient condition. 
The other necessary conditions Porter (2000) offers detailed in this paper work in a holistic 
manner. There are many cities with an abundance of inexpensive housing options, but 
comparatively few with successful music scenes.  Even with old buildings, there is still a need 
for new ideas. 

Saxenian (1994) observes innovation and new business formation in Silicon Valley’s 
economic cluster occurring due to fluidity amongst employees and firms, suggesting this 
cooperation in the face of competition is due to shared university ties, socialization in the 
community, and the relative geographic density of firms – all traits that Denton’s music scene 
embodies. Smith noted that all of the business ties and offshoots of Midlake are closely 
interwoven with personal relationships. It is also uncommon for a musician to be in only one 
band (or one firm in general, band or other). Often a musician will participate in multiple 
projects until either one reaches a national or international level of success or the musician 
decides to take what he or she has learned in the competing firms and start a new project. The 
Baptist Generals’ Chris Flemmons detailed the reality of this in his band noting that his band 
members, “all had other projects they were working on… but it just made everybody a better 
musician” (personal communication, December 27, 2012). The Echo Lab is another example of 
this with partners recording projects elsewhere until generating enough business to make 
building their own studio a viable idea (M. Barnhart, personal communication, December 26, 
2012; Firstley, 2010). 



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Scene members also circulate as employees of venues like Dan’s Silverleaf and Rubber 
Gloves and form the core staff of the 35 Denton music festival developed by Flemmons when he 
wasn’t dedicating time to his own band. This fluidity amongst firms – like the benefits of 
inexpensive rental housing – supports Porter’s (2000) observation that firms need the ability to 
experiment with little financial and long-term contractual responsibilities that could impede 
innovation. It is important to note that like Porter (2000) suggests, local financing was a factor in 
the growth of several firms once they exited the incubation stage and were able to market their 
innovations in a larger market space. 

Denton’s music scene also helps develop independent contractors and entrepreneurs. 
Smith has leveraged his work and contacts in Midlake to position himself as a top session 
drummer for recording and touring. Two in-house booking agents at Rubber Gloves left to form 
their own booking agencies, Daughter Entertainment and Tactics Productions, while multi-
instrumentalist Jeremy Buller leveraged his work with Bosque Brown to land studio and touring 
work with bands while at the same time using Denton’s music scene network to gain web 
development work for Denton artists, venues, restaurants, media outlets, and the 35 Denton 
music festival. Musician and entrepreneur Lars Larsen designed and manufactured video 
synthesizers in a spare bedroom in his home and now runs LZX Industries which employs three 
scene members and services an international clientele (J. Baish, personal communication, 
January 15, 2013; J. Buller, personal communication, January 15, 2013; L. Larsen, personal 
communication, December 30, 2012; M. Smith, personal communication, January 8, 2013). 

 
Discussion 
Economic Cluster as Catalytic Amenity. While the dynamics of Denton’s music scene can be 
framed by Porter’s (2000) economic cluster theory, the fit is not perfect. First, music scenes are 
rooted in cultural production with participants not always seeking financial gains as a reward. In 
some cases, cultural production is the reward. This disconnect is mirrored in some dynamics that 
are prominent in Porter’s (2000) work, but are less emphasized or entirely absent in the study 
results. For example, bands did not offer incentives internally “for achieving high productivity” 
nor did they tailor their aesthetic output in order to satisfy “new buyer needs.” Competition is a 
dubious point as well. Porter (2000) suggests that while there is a high level of cooperation in 
clusters, there is also a high level of competition amongst firms. Denton’s music scene is not 
without a competitive nature, but it is overwhelmingly cooperative. Using Porter’s theoretical 
framework, it could be argued that this is a trait of a cluster that isn’t advanced, but if one looks 
to the arguably more successful cluster in Athens, Georgia, the same emphasis on cooperation 
over competition is present (Jipson, 1994). Examination of additional music scenes – and other 
types of cultural scenes – within Porter’s (2000) economic cluster framework is needed to better 
understand the competition dynamic. 

The clustering dynamics of Denton’s music scene also provide several indirect effects on 
the city’s economy. Porter (2000) alludes to clusters having this potential, such as fostering 
tourism, but does not explore this facet in depth. In addition to facilitating employment networks 
as Scott (2005) and Currid (2007) observe in the film and fashion industries, Denton’s music 
scene acts as an amenity, attracting educated, highly skilled labor. All 25 participants in this 
study relocated to Denton, due – in varying degrees – to the presence of the city’s music scene. 
Of this sample, 44% have bachelor’s degrees and 16% have advanced degrees and their 
collective employment profile resembles the “creative class” that Florida (2002) suggests drives 
regional growth. Denton’s music scene also supports Seman’s (2010) suggestion that music 



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scenes can catalyze urban redevelopment, with the owner of Rubber Gloves adaptively reusing 
the former offices of a cement factory as a venue and the success of Dan’s Silverleaf spurring the 
redevelopment of multiple buildings around the venue (Carlisle, 2009; J. Glover, personal 
communication, January 4, 2013; D. Mojica, personal communication, January 24, 2013).  

Denton’s music scene also functions as a community development catalyst mirroring 
similar situations in places like Flint, Michigan and Buffalo, New York (Conaway, 2004; Seman, 
2013). In the research sample for this study, several people are either former members of the 
music scene that have moved into policymaking positions in the City, such as Kevin Roden who 
represents District 1 on the Denton City Council and Julie Glover who is the City’s Economic 
Development Program Administrator, or they serve on public commissions and boards, or they 
are people who leverage their positions in the music scene to do everything from organizing and 
playing shows raising thousands of dollars for local charities to finding employment 
opportunities for fellow scene participants (J. Glover, personal communication, January 4, 2013; 
S. Porter, personal communication, December 29, 2012; E. Pulido, personal communication, 
January 8, 2013; K. Roden, personal communication, January 8, 2013; J. Seman, personal 
communication, December 28, 2012; Watts, 2013). 

Finally, Denton’s music scene is an industry in its own right with the 25 former and 
active scene participants interviewed representing 16 bands, 3 recording studios, 2 music venues, 
a bar, a film company, a screen printing and design company, a video synthesizer company, a 
commercial music production company, and a music festival. Some of these firms are more 
financially successful than others. For example, of the 16 bands, only four have significant sales 
figures and the ability to employ members, but all of the firms outside of the bands employ 
Denton residents, contribute to the city’s tax base, and generate revenue, a portion of which is 
presumably pumped back into the local economy. 

 
Conclusion 

Analysis of the qualitative data suggests that Denton’s music scene functions like an 
economic cluster as defined by Porter (2000). Denton’s music scene has a locational competitive 
advantage resulting in comparative gains in productivity, innovation, and new business 
formation. The presence of “specialized inputs and employees,” a thick atmosphere of 
information, firms that work together on projects, the public good of UNT, and the quasi-public 
good of inexpensive rental housing foster productivity. UNT and inexpensive rental housing also 
drive innovation as the university helps attract scene participants and the housing provides space 
for them to incubate ideas. Scene participants and firms sharing information concerning “new 
technological, operating, or delivery possibilities” for music also helps drive innovation as well 
as sophisticated local audiences expecting bands to push creative envelopes while playing live 
and tolerating their imperfections during the process. This innovation leads to new business 
formation as does a low barrier of entry to the scene, an established local market, a high number 
of scene participants with specialized knowledge utilizing available tools, and financial 
institutions willing to invest in firms.  

The findings of this study suggest that policymakers should address their music scenes 
formally as one would an economic cluster in order to foster existing economic externalities in 
addition to igniting new economic possibilities. For example, city officials in Austin, Texas and 
Seattle, Washington instituted the Austin Music Commission and Seattle Music Commission 
respectively, comprised of representatives from a broad cross section of local music scene 



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participants. The goal of these organizations is to help guide city policymakers on how best to 
address their music scenes for the benefit of scene participants, residents, and the city as a whole.  

Through the work of the Austin Music Commission, a “Music and Entertainment 
Division” was established in the City of Austin’s Economic Development Department. The 
Music and Entertainment Division functions as “…an economic development accelerator and 
centralized resource center for Austin’s music industry, and an active community partner for 
Austin’s citizens, community groups, and neighborhoods,” while also focusing its efforts on “job 
creation, talent export, trade development, and industry revenue growth.” City policy changes 
addressed by the Division include loading and unloading zones for musicians and mitigating 
noise from downtown venues (City of Austin, 2015; Titan Music Group, 2012).  

The Seattle Music Commission is comprised of 21 scene participants and tasked with 
“advising City officials regarding leadership and support in the music arena, and also serving as 
a forum for City employees and departments to share information on upcoming issues and 
opportunities of relevance to Seattle's music sector” (Seattle City of Music, 2014). Items the 
Commission has addressed with the City include expanding busking and public performance 
opportunities, integrating local music in the Sea-Tac airport, establishing venue loading zones, 
advising the Chamber of Commerce concerning their “music industry sector strategy” and 
outreach events, and facilitating educational opportunities with local schools and universities 
(Seattle City of Music, 2014; Seattle Music Commission, 2013). 

The City of Omaha and the Omaha Chamber of Commerce informally addressed their 
thriving music scene by working with developers who emerged from it to help realize the 
“Slowdown” mixed-use project. When completed in 2007, the 56,000 square foot project housed 
the offices of the scene-driven independent rock record label, Saddle Creek Records, its 
warehouse, a bar, venue, cinema, residential units, and retail space. The City and Chamber 
helped guide the developers (who were also Saddle Creek Records representatives) through the 
process of site selection, tenant recruitment, and arranged for $1.3 million in Tax Increment 
Financing to complete the deal. The project met with immediate success and is now a 
cornerstone of the city’s “North Downtown” entertainment district (Seman, 2010).  

Proactive policy steps like the ones taken by cities like Austin, Seattle, and Omaha mirror 
some of Porter’s (2000) suggestions on how to engage and support clusters through policy 
initiatives – steps such as establishing communication with and giving representation to music 
scene participants, addressing music scenes via a similar economic framework as other 
established clusters, and removing obstacles that may be hindering entrepreneurs. The research 
presented in this paper also speaks to the importance of policymakers being cognizant of scene 
activity hidden in the living rooms and garages of rental homes, much like Bill Hewlett and Dave 
Packard who initially worked clandestinely in a suburban garage. In his analysis of Portland, 
Oregon’s “artisan economy,” Heying (2010) suggests an early cognizance is important, 
suggesting that city representatives and policymakers should foster cultural producers and 
entrepreneurs in their earliest steps and “give them some advice; help them out; stick with them 
when they make mistakes” (p. 284). 

Framing a music scene in Porter’s economic cluster theory enhances both the 
understanding of the theory and how music scenes operate within the urban economy. This 
research supports and further defines prior research by those examining cultural production 
dynamics in the urban economy and more research should be undertaken to address the gaps 
where economic cluster theory does not adequately describe cultural production in order to push 
the theory forward. Additionally, more research examining music scenes through the lens of 



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urban economics may help music scene participants, policymakers, and researchers better 
understand the roles these cultural economic clusters play in developing and sustaining urban 
communities and economies.  

 
Acknowledgements 

The author would like to thank Carl Grodach, Richard Florida, Enid Arvidson, Rod 
Hissong, and several anonymous reviewers for insight and helpful comments while developing 
this article and the faculty and staff of SMU-in-Taos where this draft was completed. 

 
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