Clustering dynamics within the cultural industries: the case of Cali - Colombia.

Abstract

The primary objective of this paper is to provide relevant information, from a microeconomic perspective, for the decision-making process followed by entrepreneurs interested in being part of the cultural industries (IC) in the city of Cali, Colombia. To that end, we will make use of a data clustering technique and the Herfindahl Index, to measure the dynamics of agglomeration within the IC, according to their absolute and average sales volume, the concentration of market power and the number of employees hired in average by each cultural subsector. We found that there is a strong asymmetry in the distribution of market share within the majority of cultural activities and a clear division of clusters of cultural subsectors whose behavior is similar for each variable analyzed.