Funding and Innovation Pathways for Creative Entrepreneurship: Evidence from South Africa’s Creative Economy

The creative economy includes the processes involved in producing, sharing, and using goods and services that depend on creativity, cultural understanding, entrepreneurship, and intellectual property as essential factors for economic value. This study examines the impact of digital infrastructure, artificial intelligence (AI), and innovation capabilities on the performance of South Africa’s creative economy from 1999 to 2023. It uses the autoregressive distributed lag (ARDL) model and incorporates patent activity, ICT-related trade, and creative sector variables to analyse the short-term and long-term relationships. The findings suggest that digital trade and sector maturity significantly increase intellectual property revenues, while patent activities show minimal effect, and funding factors face measurement challenges. Persistent digital divides, reflected in uneven ICT adoption, limit equitable participation and business prospects. These results highlight the challenges and systemic obstacles faced by creative entrepreneurs. Policy suggestions emphasise targeted support for commercialising intellectual property, wider access to affordable digital infrastructure, and creating AI-focused creative hubs to strengthen South Africa’s role in the global creative economy.