Creative milieu and firm location: An empirical appraisal

Abstract

This paper focuses on the creative industries – those industries that produce and commercialise creative goods and services – and the role played by the existing spatial distribution and agglomeration economies of these kinds of activities in their location decisions. Our main statistical source is the Register of Manufacturing Establishments of Catalonia (REIC), which has plant-level microdata on the location of new plants. We use count data models to show that location determinants are quite similar in both creative and non-creative industries and that both industries are positively influenced by the specialisation level of creative industries. Moreover, our results provide evidence that an unobserved ‘ creative milieu’ has a considerable impact on attracting firms.