- i - Spatial Concentration of Creative Industries in Los Angeles DIPLOMARBEIT Humboldt-Universität zu Berlin Geographisches Institut eingereicht von: Sascha Brinkhoff Gutachter: Prof. Dr. Elmar Kulke Prof. Scott A. Bollens Berlin, den 08.08.2006 - ii - To my parents, David, and Straki. - iii - Table of Content Table of Content .............................................................................................................iii List of Tables ................................................................................................................... v List of Figures ................................................................................................................ vi Abbreviations ................................................................................................................viii 1. Introduction.................................................................................................................1 2. Theoretical approaches of spatial clustering ............................................................. 5 2.1 Conditions of spatial clustering.............................................................................. 5 2.2 Explanations of spatial clustering .......................................................................... 6 2.2.1 Transaction cost theory ................................................................................... 6 2.2.2 Institutional economics approach.................................................................... 7 2.2.3 Agglomeration economies............................................................................... 8 2.3 Summary: Collective learning and tacit knowledge ............................................ 10 3. Forms of spatial concentration of economic activity............................................... 12 3.1 The model of pure agglomeration ........................................................................ 13 3.2 Network approaches............................................................................................. 14 3.2.1 ‘Marshallian’ industrial district..................................................................... 14 3.2.2 Creative, innovative milieu ........................................................................... 16 3.2.1 Porter’s cluster............................................................................................... 18 3.3 Project organization.............................................................................................. 20 3.4 Nelson’s approach on location of services........................................................... 22 4. Creative industries – Toward a definition ................................................................ 24 4.1 From ‘cultural industry’ to ‘creative industries’ .................................................. 24 4.2 Quantitative, statistical differentiation ................................................................. 26 4.3 Growth of Creative industries .............................................................................. 28 5. Understanding Creative Industries........................................................................... 30 5.1 Micro-business / SME.......................................................................................... 30 5.2 Projects................................................................................................................. 31 5.3 Risk and trust........................................................................................................ 32 5.4 Flexibility / Cross-over specialization.................................................................. 32 5.5 The production system ......................................................................................... 33 5.6 Urbanity................................................................................................................ 34 6. Creative Industries in Los Angeles........................................................................... 36 6.1 A quantitative overview ....................................................................................... 37 6.2 Mapping creative industries in Los Angeles ........................................................ 41 6.3 Summary: Geography of creative industries in Los Angeles............................... 53 7. Design industries in Los Angeles – an empirical approach .................................... 55 7.1 Creative design services ....................................................................................... 55 7.2 Case study areas ................................................................................................... 57 7.3 Methodology ........................................................................................................ 60 7.4 The interview guide.............................................................................................. 61 7.5 The interview process........................................................................................... 62 7.6 Problems of the field research.............................................................................. 63 - iv - 8. Spatial concentration of creative industries: Evaluation case study....................... 64 8.1 Business profiles and clientele ............................................................................. 64 8.2 Location factors of design businesses .................................................................. 68 8.3 Creative communities – Learning and exchange of knowledge........................... 72 8.4 Interaction / collaboration – Quantitative assessment.......................................... 75 8.5 Local and non-local collaborative networks ........................................................ 78 8.6 Excursus: Los Angeles – Buzz and reduced uncertainty ..................................... 81 8.6 Summary .............................................................................................................. 84 9. Conclusion................................................................................................................. 88 9.1 Revising explanations of geographic concentration............................................. 88 9.2 Revising concepts of spatial concentration .......................................................... 90 9.3 Cluster or spatial agglomeration?......................................................................... 94 10. Appendices............................................................................................................... 99 10.1 Classification of creative industries by NAICS ................................................. 99 10.2 Map of the Brewery Arts Complex .................................................................. 100 10.3 Interviews ......................................................................................................... 101 10.3.1 Cover letter................................................................................................ 101 10.3.2 Letter of reference ..................................................................................... 102 10.3.3 Interview guide.......................................................................................... 103 10.3.4 Interview partners...................................................................................... 107 References.................................................................................................................... 109 Internet sources ........................................................................................................... 117 Erklärung..................................................................................................................... 118 - v - List of Tables Table 6.1: Employment and establishments in creative industries in Los Angeles County in 2004 38 Table 6.2: Self-employed workers in creative industries in Los Angeles County in 2003 39 - vi - List of Figures Figure 3.1: Marshallian industrial district 15 Figure 3.2: Creative milieu 17 Figure 3.3: Porter’s diamond of competitive advantages 19 Figure 3.4: Project organization in creative communities 21 Figure 5.1: Production system of creative industries 33 Figure 5.2: Creative services industry cluster in Portland 34 Figure 6.1: Employment creative industries in Los Angeles County, 1990-2005 40 Figure 6.2: Development of employment in creative industries in Los Angeles County (in %), 1990-2005 (1990 = 100%) 40 Figure 6.3: Geographical distribution of creative industries in Los Angeles in 2003 (Total number of establishments) 42 Figure 6.4a: Geographical distribution of motion picture and video industries in Los Angeles in 2003 44 Figure 6.4b: Geographical distribution of motion picture and video industries in Los Angeles 44 Figure 6.5a: Geographical distribution of sound recording industries in Los Angeles in 2003 45 Figure 6.5b: Geographical distribution of sound recording industries in Los Angeles 45 Figure 6.6a: Geographical distribution of broadcasting industries in Los Angeles in 2003 46 Figure 6.6b: Geographical distribution of broadcasting industries in Los Angeles 46 Figure 6.7a: Geographical distribution of publishing industries in Los Angeles in 2003 47 Figure 6.7b: Geographical distribution of publishing industries in Los Angeles 47 Figure 6.8a: Geographical distribution of advertising services in Los Angeles in 2003 48 - vii - Figure 6.8b: Geographical distribution of advertising