[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/cpr/ceprdp/10263.html
   My bibliography  Save this paper

Innovation in creative cities: Evidence from British small firms

Author

Listed:
  • Rodríguez-Pose, Andrés
  • Lee, Neil
Abstract
Creative cities are seen as important sites for the generation of new ideas, products and processes. Yet, beyond case studies of a few high-profile cities, there is little empirical evidence on the link between local creative industries concentration and innovation. This paper addresses this gap with an analysis of around 1,300 UK SMEs. The results suggest that firms in local economies with high shares of creative industries employment are significantly more likely to introduce entirely new products and processes than firms elsewhere, but not innovations which are simply new to the firm. This effect is not exclusive to creative industries firms and seems to be largely due to firms in medium sized, rather than large, cities. The results imply that creative cities may have functional specialisations in new content creation and so firms are more innovative in them.

Suggested Citation

  • Rodríguez-Pose, Andrés & Lee, Neil, 2014. "Innovation in creative cities: Evidence from British small firms," CEPR Discussion Papers 10263, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:10263
    as

    Download full text from publisher

    File URL: https://cepr.org/publications/DP10263
    Download Restriction: CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Max Nathan & Neil Lee, 2013. "Cultural Diversity, Innovation, and Entrepreneurship: Firm-level Evidence from London," Economic Geography, Clark University, vol. 89(4), pages 367-394, October.
    2. Neil Lee & Andrés Rodríguez-Pose, 2014. "Creativity, Cities, and Innovation," Environment and Planning A, , vol. 46(5), pages 1139-1159, May.
    3. Duranton, Gilles & Puga, Diego, 2005. "From sectoral to functional urban specialisation," Journal of Urban Economics, Elsevier, vol. 57(2), pages 343-370, March.
    4. Dirk Czarnitzki & Hanna Hottenrott, 2009. "Are Local Milieus The Key To Innovation Performance?," Journal of Regional Science, Wiley Blackwell, vol. 49(1), pages 81-112, February.
    5. Ron Boschma & Simona Iammarino, 2009. "Related Variety, Trade Linkages, and Regional Growth in Italy," Economic Geography, Clark University, vol. 85(3), pages 289-311, July.
    6. Gilles Duranton & Diego Puga, 2001. "Nursery Cities: Urban Diversity, Process Innovation, and the Life Cycle of Products," American Economic Review, American Economic Association, vol. 91(5), pages 1454-1477, December.
    7. Fitjar, Rune Dahl & Rodríguez-Pose, Andrés, 2013. "Firm collaboration and modes of innovation in Norway," Research Policy, Elsevier, vol. 42(1), pages 128-138.
    8. Luciana Lazzeretti & Rafael Boix & Francesco Capone, 2008. "Do Creative Industries Cluster? Mapping Creative Local Production Systems in Italy and Spain," Industry and Innovation, Taylor & Francis Journals, vol. 15(5), pages 549-567.
    9. Martin Andersson & Hans Lööf, 2011. "Agglomeration and productivity: evidence from firm-level data," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 46(3), pages 601-620, June.
    10. Neil Lee & Andrés Rodríguez-Pose, 2013. "Original Innovation, Learnt Innovation and Cities: Evidence from UK SMEs," Urban Studies, Urban Studies Journal Limited, vol. 50(9), pages 1742-1759, July.
    11. Patrick Cohendet & David Grandadam & Laurent Simon, 2010. "The Anatomy of the Creative City," Industry and Innovation, Taylor & Francis Journals, vol. 17(1), pages 91-111.
    12. Brian Ashcroft & Stephen Roper & Stewart Dunlop & James H. Love, 2000. "Industry and location effects on UK plants' innovation propensity," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 34(4), pages 489-502.
    13. Rune Dahl Fitjar & Andrés Rodríguez-Pose, 2014. "When local interaction does not suffice: sources of firm innovation in urban Norway," Chapters, in: André Torre & Frédéric Wallet (ed.), Regional Development and Proximity Relations, chapter 5, pages 195-222, Edward Elgar Publishing.
    14. Mark Lorenzen & Kristina Vaarst Andersen, 2009. "Centrality and Creativity: Does Richard Florida’s Creative Class Offer New Insights into Urban Hierarchy?," Economic Geography, Taylor & Francis Journals, vol. 85(4), pages 363-390, October.
    15. Allen Scott, 2006. "Entrepreneurship, Innovation and Industrial Development: Geography and the Creative Field Revisited," Small Business Economics, Springer, vol. 26(1), pages 1-24, February.
    16. David C. Maré & Richard Fabling & Steven Stillman, 2014. "Innovation and the local workforce," Papers in Regional Science, Wiley Blackwell, vol. 93(1), pages 183-201, March.
    17. Luciana Lazzeretti & Rafael Boix & Francesco Capone, 2008. "Do creative industries cluster? Mapping Creative Local Production Systems in Italy," Working Papers wpdea0805, Department of Applied Economics at Universitat Autonoma of Barcelona.
    18. Peter Wood, 2009. "Service Competitiveness and Urban Innovation Policies in the UK: The Implications of the 'London Paradox'," Regional Studies, Taylor & Francis Journals, vol. 43(8), pages 1047-1059.
    19. Karima Kourtit & Peter Nijkamp & Steef Lowik & Frans van Vught & Paul Vulto, 2011. "From islands of innovation to creative hotspots," Regional Science Policy & Practice, Wiley Blackwell, vol. 3(3), pages 145-161, August.
    20. Andreas Stephan, 2011. "Locational conditions and firm performance: introduction to the special issue," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 46(3), pages 487-494, June.
    21. Allen John Scott, 2014. "Beyond the Creative City: Cognitive--Cultural Capitalism and the New Urbanism," Regional Studies, Taylor & Francis Journals, vol. 48(4), pages 565-578, April.
    22. Heidi Wiig Aslesen & Mark Freel, 2012. "Industrial Knowledge Bases as Drivers of Open Innovation?," Industry and Innovation, Taylor & Francis Journals, vol. 19(7), pages 563-584, October.
    23. Neil Lee & Emma Drever, 2013. "The Creative Industries, Creative Occupations and Innovation in London," European Planning Studies, Taylor & Francis Journals, vol. 21(12), pages 1977-1997, December.
    24. Iammarino, Simona & McCann, Philip, 2006. "The structure and evolution of industrial clusters: Transactions, technology and knowledge spillovers," Research Policy, Elsevier, vol. 35(7), pages 1018-1036, September.
    25. Ian R. Gordon & Philip McCann, 2005. "Innovation, agglomeration, and regional development," Journal of Economic Geography, Oxford University Press, vol. 5(5), pages 523-543, October.
    26. Bastian Lange & Ares Kalandides & Birgit Stober & H. A. Mieg, 2008. "Berlin's Creative Industries: Governing Creativity?," Industry and Innovation, Taylor & Francis Journals, vol. 15(5), pages 531-548.
    27. Pratt, Andy C., 2006. "Advertising and creativity, a governance approach: a case study of creative agencies in London," LSE Research Online Documents on Economics 20703, London School of Economics and Political Science, LSE Library.
    28. Andy C Pratt, 2006. "Advertising and Creativity, a Governance Approach: A Case Study of Creative Agencies in London," Environment and Planning A, , vol. 38(10), pages 1883-1899, October.
    29. Luciana Lazzeretti & Francesco Capone & Rafael Boix, 2011. "Reasons for Clustering of Creative Industries in Italy and Spain," European Planning Studies, Taylor & Francis Journals, vol. 20(8), pages 1243-1262, July.
    30. Caroline Chapain & Roberta Comunian, 2010. "Enabling and Inhibiting the Creative Economy: The Role of the Local and Regional Dimensions in England," Regional Studies, Taylor & Francis Journals, vol. 44(6), pages 717-734.
    31. Zachary Neal, 2012. "Creative Employment and Jet Set Cities: Disentangling Causal Effects," Urban Studies, Urban Studies Journal Limited, vol. 49(12), pages 2693-2709, September.
    32. Mark Lorenzen & Kristina Vaarst Andersen, 2009. "Centrality and Creativity: Does Richard Florida's Creative Class Offer New Insights into Urban Hierarchy?," Economic Geography, Clark University, vol. 85(4), pages 363-390, October.
    33. Trüby, Johannes & Rammer, Christian & Müller, Kathrin, 2008. "The Role of Creative Industries in Industrial Innovation," ZEW Discussion Papers 08-109, ZEW - Leibniz Centre for European Economic Research.
    34. David Audretsch & Oliver Falck & Stephan Heblich, 2011. "Who’s got the aces up his sleeve? Functional specialization of cities and entrepreneurship," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 46(3), pages 621-636, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. María Jesús Rodríguez-Gulías & David Rodeiro-Pazos & Sara Fernández-López & Manuel Ángel Nogueira-Moreiras, 2021. "The effect of regional resources on innovation: a firm-centered approach," The Journal of Technology Transfer, Springer, vol. 46(3), pages 760-791, June.
    2. Alfredo Monte & Luca Pennacchio, 2020. "Historical roots of regional entrepreneurship: the role of knowledge and creativity," Small Business Economics, Springer, vol. 55(1), pages 1-22, June.
    3. Rodríguez-Pose, Andrés & Lee, Neil, 2020. "Hipsters vs. geeks? Creative workers, STEM and innovation in US cities," LSE Research Online Documents on Economics 103974, London School of Economics and Political Science, LSE Library.
    4. Rodríguez-Gulías, María Jesús & Fernández-López, Sara & Rodeiro-Pazos, David, 2020. "Innovation in cultural and creative industries firms with an academic origin (CCI-USOs): The role of regional context," Technovation, Elsevier, vol. 92.
    5. Stephan Brunow & Antonia Birkeneder & Andrés Rodríguez-Pose, 2018. "Creative and science-oriented employees and firm-level innovation," Papers in Evolutionary Economic Geography (PEEG) 1808, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Feb 2018.
    6. Zhou, Tao & Huang, Xuhui & Zhang, Ning, 2023. "The effect of innovation pilot on carbon total factor productivity: Quasi-experimental evidence from China," Energy Economics, Elsevier, vol. 125(C).
    7. Karol J. Borowiecki & Trilce Navarrete, 2017. "Digitization of heritage collections as indicator of innovation," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 26(3), pages 227-246, April.
    8. Mercedes Campi & Marco Dueñas & Tommaso Ciarli, 2024. "Do creative industries enhance employment growth? Regional evidence from Colombia," Regional Studies, Taylor & Francis Journals, vol. 58(3), pages 425-441, March.
    9. Goya, Daniel, 2022. "Marshallian and Jacobian Externalities in Creative Industries," IDB Publications (Working Papers) 11962, Inter-American Development Bank.
    10. Nuno Campos Pereira & Nuno Araújo & Leonardo Costa, 2016. "A counting multidimensional innovation index for SMEs," Working Papers de Economia (Economics Working Papers) 01, Católica Porto Business School, Universidade Católica Portuguesa.
    11. Brunow, Stephan & Birkeneder, Antonia & Rodriguez-Pose, Andrés, 2017. "Creative and science oriented employees and firm innovation : a key for smarter cities?," IAB-Discussion Paper 201724, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    12. Coll Martínez, Eva, 2018. "Creativity and entrepreneurship: Empirical evidence for Catalonia," Working Papers 2072/306521, Universitat Rovira i Virgili, Department of Economics.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Neil Lee & Andrés Rodríguez-Pose, 2013. "Original Innovation, Learnt Innovation and Cities: Evidence from UK SMEs," Urban Studies, Urban Studies Journal Limited, vol. 50(9), pages 1742-1759, July.
    2. Neil Lee & Andrés Rodríguez-Pose, 2014. "Creativity, Cities, and Innovation," Environment and Planning A, , vol. 46(5), pages 1139-1159, May.
    3. Sara Cruz & Aurora Teixeira, 2015. "The neglected heterogeneity of spatial agglomeration and co-location patterns of creative employment: evidence from Portugal," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 54(1), pages 143-177, January.
    4. Rodríguez-Pose, Andrés & Lee, Neil, 2020. "Hipsters vs. geeks? Creative workers, STEM and innovation in US cities," LSE Research Online Documents on Economics 103974, London School of Economics and Political Science, LSE Library.
    5. Aurélie LALANNE & Guillaume POUYANNE, 2012. "Ten years of metropolization in economics: a bibliometric approach (In French)," Cahiers du GREThA (2007-2019) 2012-11, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    6. Neil Lee, 2013. "Cultural Diversity, Cities and Innovation: firm Effects or City Effects?," SERC Discussion Papers 0144, Centre for Economic Performance, LSE.
    7. Niccolò Innocenti & Luciana Lazzeretti, 2018. "Relatedness and growth: The impact of creative industries to the wider economy," Papers in Evolutionary Economic Geography (PEEG) 1819, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Apr 2018.
    8. Gutierrez-Posada, Diana & Kitsos, Tasos & Nathan, Max & Nuccio, Massimiliano, 2021. "Do Creative Industries Generate Multiplier Effects? Evidence from UK Cities, 1997-2018," SocArXiv xs8zg, Center for Open Science.
    9. Coll Martínez, Eva, 2017. "Creativity and the City: Testing the Attenuation of Agglomeration Economies fo r the Creative Industries in Barcelona," Working Papers 2072/292435, Universitat Rovira i Virgili, Department of Economics.
    10. Coll Martínez, Eva, 2018. "Creativity and entrepreneurship: Empirical evidence for Catalonia," Working Papers 2072/306521, Universitat Rovira i Virgili, Department of Economics.
    11. Fikri Zul Fahmi, 2016. "Business networks, social capital and the productivity of creative industries in Indonesia," ERSA conference papers ersa16p351, European Regional Science Association.
    12. Fikri Zul Fahmi, 2015. "Regional Distribution of Creative and Cultural Industries in Indonesia," ERSA conference papers ersa15p914, European Regional Science Association.
    13. Alfredo Monte & Luca Pennacchio, 2020. "Historical roots of regional entrepreneurship: the role of knowledge and creativity," Small Business Economics, Springer, vol. 55(1), pages 1-22, June.
    14. Eva Coll‐Martínez & Ana‐Isabel Moreno‐Monroy & Josep‐Maria Arauzo‐Carod, 2019. "Agglomeration of creative industries: An intra‐metropolitan analysis for Barcelona," Papers in Regional Science, Wiley Blackwell, vol. 98(1), pages 409-431, February.
    15. Charlie Karlsson, 2011. "Clusters, Networks and Creativity," Chapters, in: David Emanuel Andersson & Åke E. Andersson & Charlotta Mellander (ed.), Handbook of Creative Cities, chapter 5, Edward Elgar Publishing.
    16. Roman Martin & Jan Ole Rypestøl, 2018. "Linking content and technology: on the geography of innovation networks in the Bergen media cluster," Industry and Innovation, Taylor & Francis Journals, vol. 25(10), pages 966-989, November.
    17. Silvia Rita Sedita & Ivan De Noni & Luciano Pilotti, 2014. "How do related variety and differentiated knowledge bases influence the resilience of local production systems?," "Marco Fanno" Working Papers 0180, Dipartimento di Scienze Economiche "Marco Fanno".
    18. Riccardo Crescenzi & Simona Iammarino & Carolin Ioramashvili & Andres Rodriguez-Pose & Michael Storper, 2019. "The Geography of Innovation: Local Hotspots and Global Innovation Networks," WIPO Economic Research Working Papers 57, World Intellectual Property Organization - Economics and Statistics Division.
    19. Charlie Karlsson & Jonna Rickardsson & Joakim Wincent, 2021. "Diversity, innovation and entrepreneurship: where are we and where should we go in future studies?," Small Business Economics, Springer, vol. 56(2), pages 759-772, February.
    20. Rafael Boix Domenech & Luciana Lazzeretti & Francesco Capone & Lisa De Propris & Daniel Sanchez, 2011. "The geography of creative industries in Europe: A comparison analysis in Italy, France, the United Kingdom, Spain and Portugal," ERSA conference papers ersa10p1501, European Regional Science Association.

    More about this item

    Keywords

    Creativity; Creative cities; Creative industries; Cities; Innovation;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cpr:ceprdp:10263. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://www.cepr.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.