FDI in creative segments

By selecting creative industries as the subject of this study, we support the argument that the promotion of creative segments is beneficial to the general development of a city and a society. The research seeks to understand the general dynamics of the creative segments network by the profound study of a region of the world. The regional analysis in Latin America included observation of trends, description of actors, and evaluation of indicators which resulted in empirical evidence of important factors to attract creative segments. In consequence, we present a tool to help cities identify factors that will improve competitiveness in creative segments. To ensure the thoroughness of the study, we used analyses and techniques that complemented each other’s results. The use of longitudinal and network analyses, allowed to describe the development of the network over a period of time, as well as to present a picture of the accumulated linkages. In our methodology, we argue that FDI can be useful in regional analysis by using the number of investment as a measure of attractiveness. By relating location factors and FDI, we recognised significant factors for the attraction of creative segments. The research confirmed the positions of Sao Paulo and Mexico City as the leading FDI destinations of the region, however these cities have a limited participation on the regional network. Through the evidence we identified a second group of cities that hold the place of regional hubs and are among the top sources of investment; Buenos Aires, Santiago, and Bogotá Even though the network within the region is relatively weak, we argue that the promotion of creative segments can be a strategy to strengthen the regional city network.. Within the factors that positively affect the attraction of FDI we can recognise connectivity, human capital, and capacity for innovation. Human capital is a weakness for Latin America in general, but we found that the promotion of skills is more important than higher education enrolment. Meanwhile, the capacity for innovation also relates to the importance and reputation given to creative functions. Connectivity is basic for competitiveness, and therefore the region would benefit from a stronger network. Ultimately, the evidence shows that FDI in Latin America is increasing and that creative segments are growing faster than other segments. It also shows that there is a fair amount of FDI in creative segments going from Latin American cities to others in the region, which present an opportunity for Latin America to reinforce the intraregional network through.