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A Model of Creative Spillovers and Economic Growth

Recent theories of economic growth, including those of Romer, Porter, and Jacobs, have stressed the role of technological spillovers in generating growth. Such knowledge spillovers are particularly effective in cities, where communication between people is more extensive, and ideas emerge with brainstorm. Since the end of last century, the creative industries, which are characterized by the creative idea spillovers, have been in great development and vitality. Though suffered with the 2008 globally financial crisis, the creative industries show different drive from other industries. The empirical data indicates that the creative economy has been a new engine of economic growth. Based on Lucas (2008)1, this paper introduces and partially develops the initial model: adding the capital factor into the production function and taking the intellectual welfare (consumer activity) into account, and is engaged in the analysis of the mechanism of creativity to economic growth, finally concludes that the creative spillovers are positive to the sustained economic growth.