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The determinants of spatial location of creative industries start-ups: Evidence from Portugal using a discrete choice model approach

Author

Listed:
  • Sara Cruz

    (CEF.UP, Faculdade de Economia, Universidade do Porto)

  • Aurora A.C. Teixeira

    (CEF.UP, Faculdade de Economia, Universidade do Porto; INESC TEC; OBEGEF)

Abstract

This paper assesses the location determinants of the newly created firms in the creative sector within the framework of Discrete Choice Models. Estimations using a conditional logit model, which incorporate spatial effects of neighbouring regions in the location choices of firms, yield the following results: i) the concentration of creative and knowledge-based activities, due to agglomeration economies, play an important role in location decisions of new creative establishments; ii) in contrast, the concentration of service-business activities has a negative impact on location choices, which may be due to the fact that creative firms privilege interdependencies with other activity sectors, such as innovation/ knowledge-based activities; iii) creative firms tend to favour a diversified industrial tissue and related variety, in order to enjoy from inter-sectorial synergies; iv) higher education at a regional level has a highly significant, positive effect on location decisions, while lower educational levels of human capital negatively affect those decisions, explained by the specific requirements that creative firms usually have of a highly skilled labour force; v) tolerant/ open environments attract creative activities; vi) creative firms tend to favour municipalities where the stock of knowledge and conditions for innovative activity are higher. Location decisions of creative firms also vary according to the creative sector they belong to and to their own characteristics, firm’s educational level or technology-intensity. Finally, municipality attributes are more important in terms of firms’ location decisions than the characteristics of nearby regions.

Suggested Citation

  • Sara Cruz & Aurora A.C. Teixeira, 2014. "The determinants of spatial location of creative industries start-ups: Evidence from Portugal using a discrete choice model approach," FEP Working Papers 546, Universidade do Porto, Faculdade de Economia do Porto.
    • Handle: RePEc:por:fepwps:546
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    Cited by:

    1. Coll Martínez, Eva & Arauzo Carod, Josep Maria, 2015. "Creative Industries: a Preliminary Insight to their Location Determinants," Working Papers 2072/250133, Universitat Rovira i Virgili, Department of Economics.
    2. Arauzo Carod, Josep Maria & Coll Martínez, Eva & Turcu, Camelia, 2018. "Where New Creative Industries Locate? Evidence from French Departments," Working Papers 2072/307042, Universitat Rovira i Virgili, Department of Economics.
    3. Méndez Ortega, Carlos, 2017. "Location of the Software & Videogames Industry: an insight into the case of Barcelona using microgeographic data," Working Papers 2072/290759, Universitat Rovira i Virgili, Department of Economics.

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    More about this item

    Keywords

    Spatial economics; industrial location; econometric models; creative industries.;
    All these keywords.

    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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