Evidence of microspatial clustering, with maps and spatial gini coefficients, by creative industries in London. Accompaniment to the 2004 and 2010 creative industry updates

1. Microspatial clustering in London’s
Creative industries
 This version prepared for Slideshare by Alan
Freeman in December 2013
 Please cite as Freeman, A. 2005. ‘Mapping
London’s Creative Industries’. London: GLA
 This version contains details of evidence on
microspatial clustering that is not available in
published reports
 See also the Creative Industries 2004 and
2010 updates for material on clustering

2. Mapping London’s
Creative Industries
Alan Freeman

3. A new source of data about the
creative industries
 Evidence is central to LDA creative strategy
 Until now our data was from official sources
only
– Very little information about local areas
– Information about individual sectors quite
unreliable
 Microdata provides better information
– about local areas
– about individual industries
– about firm size
 But is inconsistent with official data

4. Micro-data
 Inter-Departmental Business Register
(IDBR)
 Commercial company databases
– Additional information
– Statistically more reliable (100 times more
records)
 Raw data is not consistent with official data
 Has to be transformed to make it
comparable
 Costly to use – very labour-intensive

5. The creative and sector data project
 We have now completed a pilot
– commissioned from Trends Business Research
Economics (TBR economics)
 Data from this phase will be analysed
 Next phase starts 2006
– will inform creative strategy
– will monitor and evaluate impacts
– will be extended to other LDA sectors
 What do you want to know?

6. Questions, questions
 Questions we can answer now
– Where are the Creative Industries? Are they
found where other industries are not?
– Do they cluster (do businesses of the same type
like to be close to each other)?
– Do they co-locate (do businesses of different
types like to be close to each other)?
 Questions we would like to answer later
– How do they grow? Do they grow differently from
other industries?
– What is the structure of specific subsectors, eg
Music?

7. Do Creative Firms Cluster?

8. Some cluster more than others
100%
90%
Total Creative
70%
Radio and Television
60%
50%
40%
Total All Industries 2003
(SOAs)
30%
20%
Film and Video
10%
0%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
55%
60%
65%
70%
75%
80%
85%
90%
95%
100
Percent of employees
80%
Percent of London's Standard Output Areas

9. Some cluster in a similar way
100%
90%
Publishing
70%
Advertising
60%
50%
40%
Architecture
30%
20%
Total All Industries 2003
(SOAs)
10%
0%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
55%
60%
65%
70%
75%
80%
85%
90%
95%
100
Percent of employees
80%
Percent of London's Standard Output Areas

10. Some less than others
100%
90%
Music, Performing Arts
70%
Leisure Software
60%
50%
Art and Antiques
40%
30%
20%
Total All Industries 2003
(SOAs)
10%
0%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
55%
60%
65%
70%
75%
80%
85%
90%
95%
100
Percent of employees
80%
Percent of London's Standard Output Areas

11. Where do Creative
Industries Locate?

12. Workforce jobs, all industries
Fill

13. Creative Jobs
Source: Trends Business Research, GLAE

14. Creative Businesses
Source: Trends Business Research, GLAE

15. Where Creative Jobs dominate

16. Where Creative Firms dominate

17. Employees per business

18. Employees per business

19. Employees per business

20. A Historical Memory?

21. A creative value chain?

22. Total Creative Industries
Source: TBR and GLAE

23. Specialising in Creation
Source: TBR and GLAE

24. DCMS Evidence Toolkit (DET) ‘Creation’
function
Source: TBR and GLAE

25. Concerns, solutions, and
extensions

26. Some unexpected benefits
 SIC 5-digit codes
–
–
–
–
IDBR contains 5-digit codes, ABI and LFS do not
TBR economics extract 5-digit ‘multipliers’ from the IDBR
we can apply these to ABI and LFS data
this should work for other sectors such as retailing or
construction
 More accurate treatment of self-employed
– partners, sole traders, professionals
 A possible cross-check on the ABI itself
– we know there are discrepancies between the LFS and the
ABI
– the data may help us find out why

27. Consistency
 We asked for consistency in the overall total
and for four DET ‘domains’
 This is new: DCMS and others including GLA
still use the ‘DCMS Mapping’ framework
 For individual SIC codes and sectors
complete consistency cannot be guaranteed
– ABI Architecture = 20,000
– TBR Architecture = 10,000
 This can be improved on but not perfected

28. Time
 No Creative Industry before 1992
– The SIC codes which allow the industry to be defined did
not exist
 Micro-data itself does not go back very far
 Reliability of time-series data
– the size and scope of the database may change
 Micro-data is costly
– To repeat for ten years would reach a 6-figure sum
– Does the marginal cost justify the marginal benefit?
 A compromise
– We could do the analysis for one or two years (1994 and
1999) and estimate intervening years using the ABI and/or
the LFS

29. The credits
 The idea: DCMS
 The work: Trends Business Research
 The groundwork: Kingston University, Leeds
University, NIERC, Comedia
 The researchers: Rupika Madhura, Rajesh
Gami

30. Appendix: the DET sectors
Number of workforce jobs in London
Audio-visual
Books & Press
Performance
Visual Arts
All Domains
Creation Dissemination Exhibition
158,902
32,090
1,995
11,958
11,893
63,079
3,585
3,090
221,981
47,633
16,978
Making
14,979
107,748
18,108
140,835
All Functions
207,967
119,706
30,001
69,753
427,427
Number of firms in
London
Audio-visual
Books & Press
Performance
Visual Arts
All Domains
Creation Dissemination Exhibition Making All Functions
54,233
45,679
4,445
112 3,998
19,095
3,233
15,861
12,593
5,558 7,034
34,213
32,639
1,347
227
78,317
9,025
5,898 26,893
120,133