ABSTRACT
As the economy develops, more and more exports generate greater surpluses, during which time the division of labour amongst local producers becomes more complex. For over time a strong and/or growing city economy develops the skills and the capacity to replace or substitute imports and make these products locally. The creative industries are a major part of the global economy, particularly in the USA and the UK. The story of London's creative industries sector reveals just how much economic activity there was and how important the sector has become to the London and the UK economy. The total output of the creative industries was greater than any other industrial sector except business services, with creative industries output exceeding financial services, manufacturing, health & education, transport and retail. A key feature of the creative industries is that they are not only "hi-tech" but also "hi-touch".
