Cultural and creative industries and local economic growth: exploring the urban channel

The role of cultural and creative industries (CCIs) in driving regional growth is a topic of ongoing debate, with conflicting empirical findings. This study investigates CCIs’ impact on regional dynamics from two angles. First, it recognises heterogeneity within CCIs, including technological, symbolic and artistic forms, as well as varying levels of creativity across space. Second, it considers the influence of urbanisation on the growth potential of CCIs. Using an original regional-level database on CCIs employment, the research analyses European regions’ growth patterns in relation to different forms of CCIs. Panel and spatial regression methods are employed, and endogeneity is addressed by an instrumental variable approach. The study uncovers effects of CCIs in different urban contexts, adding insightful elements for the design of regional policies.