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Germany’s Creative Sector and its Impact on Employment Growth

A Theoretical and Empirical Approach to the Fuzzy Concept of Creativity: Richard Florida’s Arguments Reconsidered

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Jan Wedemeier

The creative sector is considered to impact on employment and creative sector’s employment growth. Using a fixed effects model with time-lags, evidence is found that the creative sector fosters the growth rate of employment in German regions. Large shares of creative professionals lead to an increase in employment, but also reduce the growth rate of the creative sector. However, the growth rates are unequally distributed between the regions. Initially large shares of creative professionals further push the regional concentration of those professions in highly agglomerated regions. Driving forces for the concentration are specific characteristics, i.e. knowledge spillovers and cultural amenities. Moreover, for the evolution of the creative sector current policy strategies for the promotion of creative cities are presented.

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Part III.Applications and policy perspective

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Part III. Applications and policy perspective 7. Policy lessons from Hamburg The seventh chapter presents a case study on Hamburg, Germany, and sets theory into working practice. The chapter contributes, inter alia, to the research question 5, which asks if cities are places of high creativity. The question is relevant, particularly because in recent years concepts of creativity based on Florida’s (2002) ideas have become increas- ingly important for urban policy and planning. Following the results of section 5.2, it is concluded that agglomerated regions have the highest shares of agents employed in the creative sector, as well as the highest shares of bohemians. This result goes hand in hand with studies showing that the creative sector is mainly concentrated in urban regions (see, for instance, Andersen and Lorenzen 2005; Florida 2002). The remainder of the seventh chapter is organised as follows. First, a short statistical introduction including some structural characteristics of Germany’s three biggest cities (Berlin, Hamburg, and Munich) is presented. Afterwards, some new detailed figures on the creative sector and its submarkets are highlighted. Based on the city compari- son, a strategy for the development of cities’ creative sector is formulated. The strategy addresses general economic trends of demographic and structural change: In highly devel- oped countries such as Germany industry jobs are decreasing, while at the same time jobs in the tertiary sector increase. As we will see in section 7.2, this effect leads also to more specialisation towards cultural and creative jobs.1 Therefore an active...

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