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Creative Economies and their Role in Territorial Systems Development

Article  in  Annals of Valahia University of Targoviste Geographical Series · October 2018

DOI: 10.2478/avutgs-2018-0014

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Annals of Valahia University of Targoviste. Geographical Series (2018), 18(2): 127-135
DOI: 10.2478/avutgs-2018-0014
ISSN (Print): 2393-1485, ISSN (Online): 2393-1493
© Copyright by Department of Geography. Valahia University of Targoviste

CREATIVE ECONOMIES AND THEIR ROLE

IN TERRITORIAL SYSTEMS DEVELOPMENT

Andreea Karina GRUIA 1, Radu-Daniel PINTILII 2, Marian MARIN 3

1
University of Bucharest – Faculty of Geography & Research Center for Integrate Analysis and Territorial
Management, 1, Nicolae. Bălcescu Blvd., Bucharest, 010041, Romania, karina.gruia@yahoo.com
2
University of Bucharest – Faculty of Geography & Research Center for Integrate Analysis and Territorial
Management, 1, Nicolae. Bălcescu Blvd., Bucharest, 010041, Romania, pinty_ro@yahoo.com
3
University of Bucharest – Faculty of Geography & Research Center for Integrate Analysis and Territorial
Management, 1, Nicolae. Bălcescu Blvd., Bucharest, 010041, Romania, marin_marian@yahoo.com

Abstract
Creative economies are today one of the fastest-growing economic sectors and an impressive transforming
force, than can contribute to increasing territorial, regional or national competitiveness and, therefore, to
economic growth and long-term development. The study aims to analyze the contribution of creative
economies to the local and regional economy. Quantification of the role of creative economies in the economic
profile was made by creating a database, at the level of administrative-territorial unit, with the main economic
indicators (number of companies, number of employees, turnover and profit) for the creative economies,
according to the NACE classification (Classification of National Economy Activities), for the period 2000-2016.
The database was also used for the evolution of the ranks held by each economic sector for the analyzed
period and for the development of trend matrices on the evolution of the above indicators, at the four-digit
NACE code. The result highlight the importance of creative sector in the dynamics of local and regional
economies of the territorial systems.
Keywords: creative economies, territorial systems, regional development, territorial management

1. INTRODUCTION

The creative economy has become today one of the fastest growing sectors of the economy,
while promoting human development, social inclusion and cultural diversity (UNCTAD, 2008,
Hajkowicz, 2015), stimulating entrepreneurship and investments (Henry, 2007; Henry and Bruin,
2011).
Creative industries contribute to economic growth, these play an important role in spreading
innovation across the economy through their products and services, but also through new ideas,
knowledge, processes and new ways of working (United Nations, 2011). Creative economies are
considered being generating functional complexity and implicitly by the economic growth of local
economies (Drake, 2003, Florida, 2005, Stoian et al., 2014, Pintilii et al., 2014).
Economic, social, structural changes and economic and financial crisis have affected the
various sectors of creative industries, but due to the heterogeneity of the creative sector, this is not
case for all these activities, such as the information and communications sector, which operates
independently (Pratt and Hutton, 2013). According to the Report on the creative economy in 2010,
creative industry was, in general, the more resistant to the world economic crisis than other
traditional processing industries (United Nations, 2011), contributes to general prosperity and works
in synergy with the knowledge-based economy (Veselá and Klimová, 2014).

2. METHODOLOGY

The analysis of the role of the creative economies in the local and regional economic profile
was realized through the creation of an economic database at the level of administrative territoral

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unit and at regional level, with the main economic indicators (the number of companies, the number
of employees, profit and turnover) for creative economic activities according to the Classification of
National Economy Activities (NACE), at four-digit level. On the basis thereof have been realized
trend graphs on the evolution of the indicators above mentioned, for creative economic activities
according to the NACE, and has led to achieving of the graphs which represent the share of the
four indicators of creative sector which has been reported to the total value of the economy, and
also the graphics with the share for number of companies, number of employees, turnover and profit
from the creative sector in relation to the total value of the economy for the 8 development regions
of Romania, for the period of analysis 2000-2016.
Also, for the analysis it was necessary to extract the NACE codes belonging to creative
economies, thus, Table 1. Shows the NACE codes at the four-digit level belonging to creative
economies.

Table 1. NACE Codes, belonging to creative economies

1811 Printing of newspapers
1812 Other printing activities
1813 Prepress services
1814 Binding and related services
5811 Book publishing activities
5812 Guidebooks, compendiums, mailing lists and similar activities
5813 Newspapers publishing activities
5814 Journals and periodicals publishing activities
5819 Other publishing activities
5821 Computer games publishing activities
5829 Other software publishing activities
5911 Motion pictures, video and television program activities
5912 Post-production, Motion picture, video and television program activities
5920 Sound developing, recording and music publishing activities
6010 Radio broadcasting activities
6020 Television broadcasting activities
6110 Telecommunications activities through cable networks
6120 Telecommunications activities Wireless network (excluding satellite)
6130 Satellite telecommunications activities
6190 Other telecommunications activities
6201 Custom software development activities (software-oriented client)
6202 Information technology consultancy activities
6203 Management activities (management and operation) of computing
6209 Other information technology and computer service activities
6311 Data processing, hosting and related activities
6312 Web portals activities
6391 News agency activities
6399 Other information service activities
7111 Architectural activities
7112 Engineering activities and related technical consultancy
7120 Technical testing and analysis activities
7311 Activities of advertising agencies
7312 Media representation
7320 Activities market research and public opinion polling
7410 Specialized design activities
7420 Photographic activities
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 7430 Activities of oral and written translation (interpreting)
7490 Other professional, scientific and technical activities
9001 Artistic interpretation activities (performances)
9002 Support activities for artistic interpretation
9003 Activities of artistic creation
9101 Libraries and archives activities
9311 Operation of sports
9312 Activities of sports clubs
9313 Activities of fitness centers
9319 Other sport activities
Source: www.listafirme.ro

3. RESULTS AND DISCUSSION

The analysis of the trends of the number of companies in the creative sector for the period
2000-2016 (Figure 1.) shows an ascending development up to the year 2009, reaching the value of
60.633 companies, the most important activities being those related to architecture with 5.141 firms,
engineering activities and related technical consultancy with 10.752 companies and activities of
advertising agencies with 7.089 of companies. Being followed by a decrease in 2010 and a
significant increase until the year 2016, when the value reaches the maximum threshold of 71.203
companies in the sector, the most important being creative activities related to engineering activities
and related technical consultancy with 12.110 companies, the activities of advertising agencies with
7.991 firms and activities for custom software development activities (software-oriented client) with
7.592 firms.
The evolution of turnover in the creative sector in Romania for the period 2000-2016
(Figure 2.), presents an ascendant trend with decreases in the period 2005-2007, with the lowest
value in the year 2005, respectively, 15.600.160.552 lei. It can be observed a significant increase in
2008 and then a decrease and stagnation for the period 2009-2012, against the background of the
economic crisis. The highest values are recorded in the years 2015-2016 with 68.343.201.116 lei,
respectively, 69.671.264.198 lei the most important activities being activities related to engineering
activities and related technical consultancy and activities of advertising agencies and
telecommunications activities through cable networks.

Figure 1. Evolution of number of companies in Figure 2. Evolution of turnover in creative sector

creative sector in Romania for the period 2000-2016 in Romania for the period 2000-2016

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 The analysis of evolution of the number of employees in the creative sector in Romania for
the period 2000-2016 (Figure 3.), shows an ascending trend up during 2008, with a maximum value
336.717 employees in the creative, the most important activities being data processing,,
administration web pages and related activities with 20.567 employees, engineering activities and
related technical consultancy with 50.344 employees and activities of advertising agencies with
73.448 employees. After the year 2008, against the background of the economic crisis the number
of employees in the creative sector begins to drop, and starting with the year 2013, there is a slight
increase.
The analysis of the evolution of profit of the creative sector for the period 2000-2016
(Figure 4.) shows a fluctuating line, with the increase in the profit up to the year 2005, followed by
a decrease and an increase in 2007, with a value of profit of 6.629.495.013 lei followed by increase
and stagnation of values in the period 2014-2016 when there is a slight increase with a maximum
value of 7.701.531.643 lei in 2016, the most important activities being engineering activities and
related technical consultancy with 1.045.966.926 lei and activities for custom software development
activities (software-oriented client) with 1.222.613.687 lei.

Figure 3. Evolution of number of employees in Figure 4. Evolution of profit in creative sector in

creative sector in Romania for the period 2000-2016 Romania for the period 2000-2016

Through the share, was shown the contribution made by the creative sector to the total value
of the economy in through the four economic indicators considered relevant (Figure 8. to Figure
12.).
Thus, the evolution of the share for the period 2000-2016 (Figure 5.) reveals an upward
trend, with values of 9.35% in 2008 and 9.60% respectively in 2009, followed by a slight decrease
and an increase of of the value of the weight in the period 2014-2016 with values of 10,09% in
2014, 10,44% in 2015 and 10,84% in 2016.
The analysis of the evolution of the share of turnover (Figure 6.), presents a descendant line
of the value of share of the creative sector, thus, it is noticed a decrease of the value of turnover by a
minimum threshold in 2005, with 3,97% of the total value of the economy, followed by a slight
increase and then a stagnation in the period 2011-2014 with the value of 5.72 % and 5,63% in the
years 2015, respectively, 2016.
By analysing the share of the number of employees for the period 2000-2016 (Figure 7.), it
is noted an ascending development with a maximum of value in 2008, with 7,10% of the employees
trained in the creative sector. After the year 2008, against the background of the economic crisis, it
is noticed a decrease to 5,97% in year 2009, during the period 2010-2016 is observed a slight
increase leading to the year 2016 the value of procentage of 6.95%.

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 Figure 5. Share of the number of firms in the Figure 6. Share of the turnover in the creative
creative sector related to the total economy sector related to the total economy

The evolution of the share of profit of creative sector in relation to the total value of the
economy (Figure 8.) present a progress fluctuating line of values, such, it is noticed an increase up
to the year 2005, with a maximum of 9,57% values of the profits belong to the creative sector,
followed by the decrease and increase until the year 2010 when values stagnates and then decrease
slightly until the year 2016, leading to a value of 8,14%.

Figure 7. Share of the number of employees in the Figure 8. Share of profit in the creative sector
creative sector related to the total economy related to the total economy

The evolution of share of the number of firms in the creative sector related to the value of
the total economy for the eight development regions of Romania for the period 2000-2016 (Figure
9.) shows the Region 8 - Development Region Bucharest-Ilfov as the main region which groups
together the most important value of the share of firms in the creative sector with an ascending
development and maximum value of 4,33% in 2016. The Regions 6 – North-West Development
Region and Region 7 – Center Development Region presents notable value of the share, with
ascending developments and the maximum amount recorded in 2016 with 1.49% and with 1.13% of
the total values. Region 5 - West Development Region, Region 3 - South-Muntenia Development
Region, and Region 2 - South-East Development Region și Region 1 - North-East Development
Region present similar values of the share, with a maximum value in 2016, with values less than
1%. The Region 4 – South-Western Development Region is the region with the lowest values of the
share of the creative sector in the total values of the economy, with values not exceeding 0,5%.
The analysis of the share of turnover in the creative sector related to the value of the total
economy (Figure 10.) presents Region 8 - The Bucharest-Ilfov Development Region as the region

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that groups the highest value of the creative sector share, having a fluctuating trend, with fluctuating
values between 5.55% and 1.06%, the latter being the lowest value of the share registered in 2012.
Region 6 - The North-West Development Region records a weight of 0.64% in 2014 and the other
regions not exceeding 0.50%.

Figure 9. Share of the number of firms in the
creative sector related to the total economy for
development regions of Romania; Region 1 –
North-East Development region, Region 2 –
South-East, Region 3 –South-Muntenia
Development region, Region 4 – South-West
Oltenia Development region, Region 5 – West
Development region, Region 6 – North-West,
Region 7 – Center Development region, Region 8
- Bucharest-Ilfov Development region
Figure 10. Share of turnover in the creative sector
related to the total economy for development
regions of Romania; Region 1 – North-East
Development region, Region 2 – South-East,
Region 3 –South-Muntenia Development region,
Region 4 – South-West Oltenia Development
region, Region 5 – West Development region,
Region 6 – North-West, Region 7 – Center
Development region, Region 8 - Bucharest-Ilfov
Development region

The evolution of the share of the number of employees in the creative sector related to the
value of the total economy for the eight development regions of Romania for the period 2000-2016
(Figure 11.) shows the Region 8 - Development Region Bucharest-Ilfov that region as the value of
the share of large groups of employees in the creative sector with an ascending trend and maximum
value of 3.78% in 2016. The Regions 6 – North-West Development Region and Region 7 - Center
Development Region shows the value of share of 0.86%, respectively 0.52% in 2016. Region 5 -
West Development Region, and Region 2 – South-Eastern Development Region shows fluctuations
values with a maximum of values 1.49% in 2008, respectively 0.76% in 2007. Region 1 - North-
East Development Region, Region 4 – South-Western Development Region and Region 3 - South-
Muntenia Development Region are the regions with the lowest values of the procentage of the
creative sector, with values not exceeding 0,5%.
The evolution of the share of profit of creative sector related to the value of the total
economy for the period 2000-2016 (Figure 12.) highlights Region 8 - Development Region
Bucharest-Ilfov that region to be noticed by the important values of the share of evolution, with
descending fluctuating line, with a maximum of 11,95% of total value of the economy. The Regions
6 – North-West Development Region and Region 7 - Center Development Region shows the values
of share of 0.86%, respectively, 0.54% in 2016. The other regions of development Region 5 - West
Development Region, Region 2 – South-Eastern Development Region, Region 1 - North-East
Development Region, Region 4 – South-Western Development Region and Region 3 - South-

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Muntenia Development Region shows the values of the weighting of less than 0.50 % share of the
total value of creative sector of the economy.

Figure 11. Share of the number of employees in
the creative sector related to the total economy for
development regions of Romania; Region 1 –
North-East Development region, Region 2 –
South-East, Region 3 –South-Muntenia
Development region, Region 4 – South-West
Oltenia Development region, Region 5 – West
Development region, Region 6 – North-West,
Region 7 – Center Development region, Region 8
- Bucharest-Ilfov Development region
Figure 12. Share of profit in the creative sector
related to the total economy for development
regions of Romania; Region 1 – North-East
Development region, Region 2 – South-East,
Region 3 –South-Muntenia Development region,
Region 4 – South-West Oltenia Development
region, Region 5 – West Development region,
Region 6 – North-West, Region 7 – Center
Development region, Region 8 - Bucharest-Ilfov
Development region

The results suggest new concepts in the analysis of the role of creative economies in
regional and local economic profile in Romania, these can fill in the studies made previously on the
dynamics of the economic profile of the creative economies (Peptenatu et al., 2012a, Pintilii et al.,
2014, Stoian et al., 2014, Pintilii et al., 2017), studies on the structural dynamics of territorial
systems (Ianos et al., 2012; Peptenatu et al., 2012a, 2012b; Prăvălie et al., 2014a, 2014b) and
strengthen the idea that the creative economies are generating functional complexity and growth of
local and regional economies (Drake, 2003, Florida, 2005, Stoian et al., 2014, Pintilii et al., 2014)
and can lead to a better understanding the role of the economic component in generating adaptive
capacity (Pintilii et al., 2016).
Also, the metodology used contribute to the completion of such studies and has an important
contribution to the complexity of the functional analysis at the level of the local economy
(Peptenatu et al., 2012).

4. CONCLUSION

Creative economies represent a valuable resource for the development and local and regional
economic growth. The analysis of the dynamics of economic profiles using the four economic
indicators (number of firms, turnover, number of employees and profit) reveals an ascending trend
analysis for the period 2000-2016.

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 The analysis of the share, shows a significant contribution brought by the creative sector in the
total value of the economy and the procentage of the creative sector at the level of the eigth
development regions highlights the regions which are detashed by an important contribution to the
spreading of innovation in the whole economy, the most important being Region 8 Region –
Bucharest-Ilfov Development Region followed by the Region 6 – North-West Development,
Region 7 – Center Development Region.

5. ACKNOWLEDGEMENTS
This work was supported by a grant of the Romanian National Authority for Scientific Research
and Innovation, CNCS - UEFISCDI, project UB 1407/2018.

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