Urban Economy's Interplay with the Creative Sectors: Initial Insights Revealed

In a significant study, researchers Dr. Diana Gutierrez Posada and Dr. Max Nathan, from City REDI at the University of Birmingham and UCL respectively, delve into the growth and impact of the creative industries in major cities across the United Kingdom. The research, which is currently being analysed by Dr. Emily Smith, aims to shed light on the relationship between creative industries and urban economies.

One key finding is the propensity of creative industries to cluster heavily in cities. This trend is not new, with more creative activity being observed in more places than before. However, it is important to note that while there is a positive association between the growth of creative industries activity and growth elsewhere in urban economies, it is not yet confirmed that creative industries drive urban growth.

The study, which uses the Business Structure Database to build a unique 21-year data set for UK cities from 1997-2018, reveals that in the UK, 53% of creative industries jobs and 44% of firms are found in just five cities. This concentration raises questions about the impact of creative clusters on urban economies, with no clear conclusions as yet.

If creative activities draw in high-skill workers and industries, this may lead to gentrification and increased housing costs. On the other hand, creative clusters may generate multiplier effects, supporting jobs growth and firm creation, especially in local services like cafes, bars, and shops.

The study defines creative industries using standard government definitions and divides the rest of the economy into tradeable and non-tradable categories. Professor Dave O'Brien discusses the importance of higher education to the arts, culture, and heritage sectors, while Dr Josh Siepe's research focuses on the co-location of the Creative Industries with Other Industrial Strategy Priority Sectors.

The Creative Industries Sector Plan has made several key sector-wide announcements, and the next stage of the analysis will dig into these relationships further and examine whether the creative industries are a driver of urban economies. The 2025 Spending Review has implications for the creative industries, as discussed by Creative PEC Bernard Hay and Emily Hopkins.

Marta Foresti, who has become Chair of the Global Creative Economy Council, discusses the value of international cooperation. The Global Creative Economy Council is involved in conversations between the Global North and South, aiming to unsettle and reorder the creative economy.

A study by Professor Nick Wilson addresses the equity gap in Britain's creative industries, titled "Bridging the Imagination Deficit." Journalism occupations are included on the DCMS's list of Creative Occupations, and the importance of accredited qualifications in journalism is emphasized.

The shift to post-industrial structures and a greater demand for 'experiences' are linked to these location patterns. The study's findings underscore the complexity of the creative economy and the need for further research to fully understand its impact on urban economies.