Abstract

Local government relates to the public administration of towns, cities, counties, and districts. One of the key responsibilities of local government is the administrative purpose of supplying goods and services. Local governments should also represent and involve citizens in determining specific local public needs and how these local needs can be met. As the structure of gross domestic product (GDP) in many countries across the world changes, so do the expectations towards the role of local governments as far as supporting local economic growth is concerned. The administrative purpose involves creating conducive conditions for economic development. Statistical figures show that the share of the creative economy in the GDP of the most developed countries is steadily increasing. New economic sectors such as “creative industries” pose a challenge to local governments. In this paper, we present a conceptual model for measuring the efforts of local governments in developing and supporting the creative industries. The model proposed by the authors allows for the comparison of smaller administrative units such as counties regarding their advancement and commitment to supporting creative industries.

Highlights

  • The issue of economic development has been at the centre of economics since its very beginnings [1]

  • Resentment towards strangers is the second most important factor hindering the sustainable development of a county

  • The non-financial interventions are the following: “Preventing brain drain” (IP1 = 45.3%), “Marketing of the county” (IP3 = 43.2%), “Support for grass-roots initiatives of citizens” (IP5 = 32.2%), “Development of civic society” (IP6 = 31.2%), “Marketing of the county as a tourist destination” (IP11 = 20%), “Support for talented students” (IP12 = 19.2%), and “Cooperation with other local-government offices” (IP13 = 17.7%). Those factors that are directly related to the creative economy—such as “Sports and cultural events” (IP14); “Cultural institutions” (IP17); “Increase of Internet accessibility” (IP19); or “Countermeasures for intolerance, racism, homophobia” (IP21)—are not preferred areas of intervention

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Summary

Introduction

The issue of economic development has been at the centre of economics since its very beginnings [1]. The last 40 years of economic development have proved that rapid economic progress can be achieved through service industries and knowledge economies. Depending on their perspective, different scholars highlight different distinguishing features of those changes, for example, knowledge-based economy, weightless economy [2], The Digital Era, or Industry 4.0. Intangible assets play a crucial role; among them, special attention is devoted to knowledge as a driver of economic growth. Knowledge may appear both as an input (competence) and output (innovation) in the production process [3]. We believe that the scarcity of intangible resources in the 21st century will be just as important as the scarcity of natural resources—a common theme in the literature on sustainability

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