Creative Industries and Regional Productivity Growth in the Developing Economy: Evidence from Indonesia

Fikri Zul Fahmi*, Sierdjan Koster

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

11 Citations (Scopus)
75 Downloads (Pure)


This paper examines the degree to which creative industries stimulate regional productivity growth in a developing country, Indonesia. The Indonesian government promotes long-established traditional craft businesses as creative industries, but they pay less attention to new knowledge creation and focus on highlighting heritage values as selling points. Our findings show that the real creative industries are still scarce and found mostly in fairly advanced urban regions. These industries are more likely to be an indicator than a driver of regional economic development. Meanwhile, those traditional businesses are much larger than creative industries and potentially contribute to regional productivity through consumption activities, thereby requiring different policy strategies.

Original languageEnglish
Pages (from-to)805-830
Number of pages26
JournalGrowth and Change
Issue number4
Early online date2017
Publication statusPublished - Dec-2017



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