Measurement and determinants of creative capital in Europe

Abstract

One of the important factors influencing the development and competitiveness of economies is creative capital. It differs significantly among European countries, which has an influence on income and quality of life. The aim of the research discussed in this article is to determine the level of creative capital in Europe and to identify its determinants. The starting point of the analysis is the 3T theory (talent, technology, tolerance), formulated by Richard Florida, and the concept of a creativity index, which derives from the theory. The concept does not define creative capital precisely, therefore, this article proposes its measures based on statistical data obtained from Eurostat and a synthetic measure of creative capital. Data relating to European countries and covering the period of 2011–2018 were used. Moreover, an attempt was made to determine the level of creative capital by means of socio-economic factors (e.g. the number of people working in creative professions, the structure of the population by age and income, and expenditure on culture). Empirical analyses indicate significant differences in the level of creative capital in Europe. This is mainly influenced by the level of the wealth of economies and the number of people working in creative occupations, while cultural expenditure is less important for the development of creative capital.