The relationship between creative industries and the urban economy in the USA

This study presents a new CQ (cluster quotient) and 3Q (quality and quantity quotient) index to find the magnitude and type of creative clusters and highlights the relationship between creative industries and the urban economy. This study finds that California, MD is the creative cluster and California and Colorado play an important role in the creative industries across the USA. This study also finds that there is a significantly strong relationship between creative industries and the urban economy by employing a Seemingly Unrelated Regression model based on all US metropolitan statistical areas. The elasticities of creative industries and CQ are 0.48% and 0.67% for the gross domestic product (GDP), and the elasticities of the GDP are 0.24% for creative industries and 0.13% for CQ. These results show that they have positive interaction effects between them, and governments can utilise creative industries and creative clusters to develop their economies.