Understanding and creating industry clusters is a recent and rising trend in business analytics. Within the last few years, the rise of the creative industry identifying creative clusters has become an important element to business, with the industry GVA growing by 8.9 percent per year, almost twice as fast as the overall economy. With the rise of the creative industry, identifying creative clusters has become an important step to understanding when and where to capitalise in the creative industry.
A creative cluster is, at its core, a geographically similar area with similar creative sub-sectors making significant economic contributions. In total, 47 creative clusters have been identified in the UK by Nesta for the creative consulting and development firm, Creative England. Their findings have a very significant impact on understanding the development of the creative industry.
When taking a look at the map, it is clear most creative industries are centred around London in the Southeastern area of the UK. The rapid growth of these areas is highly contributed to design, digital, and advertising industries. The growth of media effectiveness for marketing purposes has led to a rise in corporate video production and influencer marketing within these areas, however, growth has been experienced in all sub-sectors studied by Nesta.
It is very important to take into account that while some clusters are plainly obvious, London for example, some clusters on and off the list are not. Creative cluster models do not focus on how ‘hip’ or creative a city culture may be, but rather, on the contributions of the creative economic sector of the area. So, while cities such as Brighton, Liverpool, and Glasgow may seem less ‘hip’ their economic contributions within their concentrated creative industries make them areas of high growth.
How can creative clusters drive business performance and product awareness?
Marketing is one of the sub-sectors at the core of the growth of the creative industry. Harnessing the power of creative marketing is becoming an essential part of the modern firm. From corporate video production to a quintessential social media presence, harnessing creativity directly relates itself to sales.
The graph below depicts local networking with the creative industry in every given city. The orange indicates the top 10% of companies gross networking with the gradient falling to blue.
Focusing on new business opportunities in identified creative clusters can streamline creative supply chains, increasing overall efficiency, by focusing on local production. It can also lead to creating shared value within the surrounding community, as creative services often contribute to marketing strategies for urban regeneration and rebranding.
Understanding creative clusters can also lead to the opportunity for collaboration and networking across clusters and sub-sectors even further developing the quality creative content across the UK.
By: Grace O’Neil
Marketing Associate- Knice Creative