Abstract: |
Creative industries are nowadays central in many policies to stimulate the
economic development of cities, regions and advanced capitalist economies in
general. This paper contributes to the creative industries literature in two
respects. First, we empirically explore if high shares of creative industries
in regions go together with one particular aspect of regional economic
development, namely firm entry rates. Drawing on Dutch trade register data
over a six-year period, it is concluded that at the level of municipalities
there is indeed a connection between the share of creative industries and firm
entry, even after controlling for the sizes of municipalities, and no matter
if creative industries are defined broadly or narrowly. Second, the paper
analyses if firms in creative industries are heterogeneous in terms of
business processes and their contribution to regional firm entry. Drawing on
previous work four creative domains are identified: arts, media and
entertainment, creative business services and, at the periphery, knowledge
intensive business services. After analysing survey data of 4,746 Dutch SMEs,
we find that firms across these domains are distinct in their use of the
surveyed business practices: innovation, strategy and marketing, and human
resources practices. Especially knowledge intensive services firms are
deviant. For the connection with firm entry rates, it appears that high shares
of firms in the arts and knowledge intensive business services are
significantly connected with regional firm entry rates, while media and
entertainment and creative business services remain insignificant.
Implications for practitioners and future research are discussed. |