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Creative Clusters and District Economies: Towards a Taxonomy to Interpret the Phenomenon

Abstract This paper deals with the occurrence of district economies in creative clusters, through the systematization of the extensive literature on the spatial concentration of creative activities. The research contributes to a larger understanding of creative clusters according to a revised taxonomy, formerly applied to traditional industrial districts, based on the four main advantages that district economies seem to trigger: reduction of production and transaction costs, increased efficiency of factors of production and enhancement of dynamic efficiency. Addressing the extent to which the same factors can be found in creative clusters, the paper, firstly, seeks to review some of the most important contributions that deal with such externalities, in the context of creative industries. Secondly, it provides some related reflections on strengths and weaknesses and possible future research developments. The net result is an effective analytical framework that can be used to interpret this peculiar geographic agglomeration, combining the notion of district economies and the exceptional features of creative industries.