Location Determinants Of Firms Research Articles

Auckland and the creative industries: the spatial distribution of the design subsector

ABSTRACTAuckland is New Zealand’s largest city with the largest concentration of creative sector employment and businesses in the country. This paper examines the spatial distribution of firms in the design creative subsector across the Auckland Region and in inner Auckland and ascertains the key determinants of firm location. The macrolevel findings indicate that the architectural and specialized design firms have similar spatial distribution patterns across the Auckland Region, while the advertising subsector demonstrates an extreme tendency toward spatial concentration only in inner Auckland. All three subsectors have a strong propensity to clustering within inner Auckland; however, one CBD (Central Business District) fringe area, Parnell outperforms the rest. The microlevel findings reveal hybridized creative clusters of uneven density. Parnell’s unique brand and place-specific characteristics were the key determinants of firm location which led to the spontaneous collocation of firms. These location decisions had the unintended consequence of creating agglomeration economies.