This research analyses the effect of creative service industries on labour productivity of the regions. Creative service industries offer services that increase a region's capacity to generate and combine new ideas, resulting in an increased production of innovations which raise productivity. The paper proposes an analytical framework and compares findings in 250 regions in 24 countries of the European Union in 2008. We find that creative service industries increases labour productivity of the regions and their effects are as important for regional productivity as scientific research or highly qualified human capital.JEL classification: R11, R12, R58

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This work analyses the economic impact of the creative industry in the European Union. The paper quantifies the direct and indirect impacts of the creative industry, concluding that they not only have a direct impact on the employment and the production, but also contributes to the technological progress and long-term development of the European Union. Most of this contribution is due to the creative service industries, whereas the direct contribution of the creative manufacturing industries is smaller.

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This paper studies innovation in the creative industry of art restoration, which is characterised by an intensive use of symbolic knowledge. Using the resource-based view of the firm as a theoretical framework, this study adapts Community Innovation Survey (CIS) methodology to this industry, creating and exploiting a unique dataset from the restoration departments of museums in 43 countries on 5 continents. The results suggest that the type and composition of the knowledge bases in play influence a department's absorptive capacity to access external information sources and thereby impact innovative outcomes. The article contributes to innovation literature by capturing innovation processes in a symbolic-based industry.

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