Location Patterns of Creative Capital and Regional Disparities in Spain

Abstract

The creative class as a source of growth has been afforded increasing attention in recent years. However, creative people are not distributed evenly across space, tending rather to concentrate in particular locations. The location decisions of these creative people have been forwarded as a significant factor in accounting for regional disparities in growth and development (Florida, 2002; Fritsch and Stuetzer, 2009). Inspired by the ongoing debate surrounding the creative class theory, this study investigates the spatial distribution of creative capital and its links with regional disparities by examining the geographical divergence of provincial income in Spain. Our findings indicate that although provinces with low levels of creative capital around 1996 experienced an increase in their creative employment in the years leading up to 2004, they still lag behind the northern (and, in particular, the north-eastern) provinces of Spain. More interestingly we report strong spillover effects among the leading and lagging provinces. This spatial pattern of creative capital also accounts for the north-south divide in Spain. Thus, our empirical evidence shows that the provinces with high levels of creative capital in northern Spain are more developed in terms of provincial income even when controlling for other determinants of the process, including industrial development, regional spillover effects and human capital development.