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Cultural Activities: Source of Competitiveness and Prosperity in Urban Regions

Institute for Economic Policy Research, University of Karlsruhe, 76128 Karlsruhe, Germany, kowalska{at}iww.uni-karlsruhe.de

Rolf H. Funck

Institute for Economic Policy Research, University of Karlsruhe, 76128 Karlsruhe, Germany, unck{at}iww.uni-karlsruhe.de

Over the past two decades, the potential of cultural activities to contribute to regional economic development has been increasingly recognised. This paper provides an analysis of the importance of the cultural sector for the economic prosperity of an urban region using the example of the city of Karlsruhe in Germany. It argues that the evaluation of the role of this sector involves the assessment of its direct contribution to regional performance and its impact on the competitiveness of other economic activities located there. The paper contains an empirical part where an effort is made to measure these effects. Finally, the role played by cultural initiatives in the regional development of the urban area of Karlsruhe is discussed.

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