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Item Arts Districts, Universities, and the Rise of Digital Media(2013-06) Breznitz, Shiri M; Noonan, Douglas S.In the last decade, arts and culture have been placed at the center of attention when discussing economic growth. In particular, studies on the “creative class” have been using arts and culture as an important factor impacting local economies. In addition, studies on local economic development have frequently viewed universities as a major factor in economic growth. In the middle of this discussion is new economic growth via creativity, via new recipes and new combinations of local capital, and via innovation centers. Combining these disparate literatures brings to center stage both clusters of arts and culture and concentrations of research and human capital development. Hence, the focus of this paper is to analyze the dual impacts of universities and arts districts on innovation and economic growth through employment in digital media. The results indicate that cultural districts have a consistently positive effect on local digital media economic activity—employment and innovation. The same cannot be said for research universities.