The Creative Class Revisited: Does the Creative Class Affect the Birth Rate of High-tech Firms in Nordic Countries?

Abstract

In the new knowledge-based economy, the ability of both firms and regions to adapt to the changes in their external environment and to remain competitive is closely related to their capacity to innovate and continuously renew the existing structures and knowledge bases. With respect to this, dense concentrations of knowledge-intensive industries and related activities are usually considered to be propitious environments from which new innovations can emerge. In such environments, the ability to attract talented, highly skilled labor is crucial for the success of regions. Employees who possess and provide know-how and creativity play a leading role in knowledge-intensive production and innovation systems. For Florida (2002a), creativity and know-how are internalized in the creative class. In this paper, Florida's creative class thesis is applied to the context of the Nordic countries. The importance of location in attracting creative class members was studied. The empirical study also aimed at identifying the role of the creative class in supporting the birth of new high-tech firms in the Nordic countries. In addition, the relationship between high-tech intensity and the creative class is described. Our analysis indicates that the link between the creative class and high technology is strong with the share of high-tech employees, concentrations of high-tech industry, and the formation of new high-tech firms.