This paper examines the determinants of localization of creative industries by using plant-level microdata. The paper proposes a model tailored to differentiate the effect of general-economic and specific-creative forces on the localization of creative industries. The model is applied to the local labour systems of Spain. The results show that traditional external economies (localization and urbanization) affect the location of creative industries in Spain, complemented by the effect of specific creative externalities. The results offer a novel insight into the determinants of location of creative industries. The work thus provides some empirical basis for the design of policies that may boost the capacity of territories for creativity and innovation, in line with the objectives set out by the European Commission.

This paper examines the determinants of localization of creative industries by using plant-level microdata. The paper proposes a model tailored to differentiate the effect of general-economic and specific-creative forces on the localization of creative industries. The model is applied to the local labour systems of Spain. The results show that traditional external economies (localization and urbanization) affect the location of creative industries in Spain, complemented by the effect of specific creative externalities. The results offer a novel insight into the determinants of location of creative industries. The work thus provides some empirical basis for the design of policies that may boost the capacity of territories for creativity and innovation, in line with the objectives set out by the European Commission.