Locational Decisions in a Creative City: Evidence from Penang's Architectural Firms

Abstract

The importance of location has been revisited and reinstated with the emergence of concepts such as "creative economies, creative cities". In a creative city, the defining characteristic is the clustering of creative human talent or the "creative class" to drive growth, progress and economic development. In the literature, selected locations in urban areas function as magnets to attract and retain the creative class. This paper examines the case of Penang's construction industry, which is classified as a creative industry. The paper aims to understand the factors that shape the locational decisions of employers in Penang's construction industry. Both quantitative and qualitative research methods were used to elicit data. Thirty-five architectural firms were surveyed and 16 employers were interviewed. The findings suggest that location is not the main factor that determines where young creative architects prefer to live and work. In fact, Penang is currently facing the critical issue of attracting and retaining young creative architectural talent, as architects prefer monetary gains in larger cities than remaining in Penang. Penang is not perceived as an ideal location for young creative talent to cluster, and this in turn impacts the employers and the industry as a whole. More committed state interventions and a good incentivising system should be in place to reverse the "brain drain" and make Penang an optimal location that attracts the creative class back and drives the construction industry's competitive and creative edge to greater heights.