Creative industries represent more than 3% of employment and, if all creative activities are accounted, this figure exceeds 7% of national employment. Additionally, the rate of growth in these sectors is far superior than that of the national economy, their average annual growth almost doubles the whole economy’s growth rate. The aim of this study is to show empirical evidence that the creative activities sector contributes to the reduction of productive inefficiency through innovation, which leads to a productivity growth that improves the competitive situation of firms in cities with greater concentration of talent and creativity. We use the NESTA and UNCTAD methodology to classify creative sectors, then we use a stochastic frontier model to measure the impact that creative industries have on the efficiency, innovation and productivity of Mexican cities. To that end, we studied creative industries in 59 Metropolitan Areas of Mexico, using data from the Economics Census published by the INEGI. Our results show that Research & Development, as well as Software, are the creative sectors that generate strong spillover effects on the rest of the activities in Mexican cities, and lead to higher levels of productive efficiency in all productive sectors of the economy.
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