26 May 2022
It is well documented that creative businesses are clustered in urban areas. This insight leads to a possible policy bias towards metropolitan areas, in terms of funding intervention and business support. To date there has been little focus on how and whether creative industries cluster in rural areas. New research published today by the National Innovation Centre for Rural Enterprise (NICRE) and Creative Industries Policy & Evidence Centre (PEC) finds that microclusters are spread widely across England, with around a third of all rural creative firms operating within a cluster. This finding suggests there is a benefit to creative businesses clustering in rural settings, which has important policy implications, particularly within the context of the Levelling Up agenda.
That rural creative firms are found to cluster suggests ‘external economies of scale’; they become more productive through being co-located. This follows a comparable pattern in urban areas, which suggests policy intervention could further support this clustering activity.
The new research Mapping and examining the determinants of England's rural creative microclusters was led by the University of Sussex Science Policy Research Unit, and funded by NICRE. It finds that the drivers of rural creative clusters are the same as those in urban areas. It is only in relation to the ‘presence of informal networks’ that the data wasn’t strong enough to be a determining factor behind rural microclustering, as it is in urban settings. This significant finding suggests the need for policy interventions to encourage the formation of such networks in rural places.
Gallery Forty5, a microcluster just off the A1 in Felton, Northumberland, is a great example of what happens when creative businesses cluster together. Based in a former Victorian pub, it is a hub for five creative businesses, as well as hosting artists working in a variety of materials including acrylics, leather, watercolour, and print, as well as a wool shop.
Jane, a former primary school teacher and manager of the Gallery, said: “Being on the same site brings massive advantages for the creatives. Each of the artists’ own promotion of their work brings customers into the shared space which has a knock-on effect for the other businesses. This wouldn’t happen if they were based in individual premises or at home, as many of them were before joining us, and it makes sense to form a cluster.
“Being able to see artists at work is also an attraction for our customers and is good for business.”
The rural creative microclusters research is one of seven projects funded by NICRE and carried out by universities across England to further explore rural enterprise and expand its portfolio.
The overriding significance of this new research is that it establishes that rural clusters exist across England and that the factors behind clustering do not differ from urban settings, hence policy interventions could have a significant positive impact in rural locations.
This interactive map shows the location of rural microclusters identified in the research.
In England rural communities contribute around 16% GVA, equivalent to around £261billion. There is however considerable room for growth, up to £347billion higher than now according to some studies (Bosworth et al 2020). The concept of ‘Left Behind Britain’ indicates the existence of pockets of rural life insufficiently served with transport, economic and social infrastructure, education, personal mobility and health.
This paper also finds evidence that being close to a university supports the emergence of rural creative clusters. This has policy implications in terms of the importance (or otherwise) placed on creative subjects within higher education settings.
There is also an indication, that as in urban settings, the presence of ‘anchor institutions’ such as museums or galleries can support rural clustering and this should also be considered in relation to Levelling Up policies.
Inge Hill, co-investigator at NICRE and a co-author of the report, said: “We at NICRE are delighted to have had the opportunity to develop these insights on rural creative clusters in partnership with the Creative Industries Policy and Evidence Centre and the University of Sussex, Science Policy Research Unit.
“Rural creative clusters in hubs have an important role for rural local development. They offer many events where the local community can participate or come and visit, going beyond the commercial aspect of the event for the artists. These events are also essential for community members informally coming together and chatting over coffee and cake, which is important for their well-being.”
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