The spatial location choices of newly created firms in the creative industries

The literature on the economics of location regarding creative activities is relatively scarce. Estimations, based on 369 newly created firms operating in creative industries in Portugal, which incorporate spatial effects of neighbouring regions in the location choices, yield the following results: (i) the concentration of creative and knowledge-based activities play an important role in location decisions of new creative establishments; (ii) creative firms tend to favour a diversified industrial tissue and related variety, in order to enjoy from inter-sectorial synergies; (iii) high education at a regional level has a highly significant, positive effect on location decisions, while lower educational levels of human capital negatively affect those decisions; (iv) tolerant/open environments attract creative activities; (v) creative firms tend to favour municipalities where the stock of knowledge and conditions for innovative activity are higher; (vi) municipality's attributes are more important in terms of firms' location decisions than the characteristics of nearby regions.