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The Role of Creative Industries in Industrial Innovation

  • Trüby, Johannes
  • Rammer, Christian
  • Müller, Kathrin

This paper analyses the role of creative industries in affecting an economy's innovation performance. We conducted a survey of more than 2,000 creative industry enterprises from Austria which are defined by a combination of sector affiliation and the degree of creativity of the services they offer. We show that the creative industries are among the most innovative sectors in the economy. They support innovation in a variety of other sectors through creative inputs, such as ideas for new products (i.e. innovation content), supplementary products and services (such as software) or marketing support for product innovations. What is more, they are also an important user of new technology and demand innovations from technology producers, particularly information and communication technologies. Own innovative activities are a key driver for supporting innovation. Creative industries are no homogenous sector, however. While software and advertising show the strongest links to industrial innovation, architecture and content providers contribute rather little to industrial innovation. A main barrier to fully utilising the innovative potential of this sector is the lack of time at the side of creative entrepreneurs which reflects the small average firm size and the high share of sole traders. Innovation policy in support of creative industries should thus design programmes that are suitable for micro firms.

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Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 08-109.

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Date of creation: 2008
Date of revision:
Handle: RePEc:zbw:zewdip:7499
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  1. Crepon, B. & Duguet, E. & Mairesse, J., 1998. "Research Investment, Innovation and Productivity: An Econometric Analysis at the Firm Level," Papiers d'Economie Mathématique et Applications 98.15, Université Panthéon-Sorbonne (Paris 1).
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  6. repec:fth:inseep:9833 is not listed on IDEAS
  7. Elena Huergo & Jordi Jaumandreu, 2004. "How Does Probability of Innovation Change with Firm Age?," Small Business Economics, Springer, vol. 22(3_4), pages 193-207, 04.
  8. Acs, Zoltan J & Audretsch, David B, 1988. "Innovation in Large and Small Firms: An Empirical Analysis," American Economic Review, American Economic Association, vol. 78(4), pages 678-90, September.
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  10. Fagerberg, Jan, 1995. "User-Producer Interaction, Learning and Comparative Advantage," Cambridge Journal of Economics, Oxford University Press, vol. 19(1), pages 243-56, February.
  11. Allen J. Scott, 1997. "The Cultural Economy of Cities," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 21(2), pages 323-339, 06.
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