Single-industry towns: From creative arbitrage and sovereignty to creative spillover

The sustainable development of single-industry towns is intrinsically linked to successful economic diversification, with creative industries representing a significant potential driver. This article presents a conceptual model and empirical validation of key factors influencing the development of creative industries, utilizing panel data from Ural and Siberian company towns. The case study of Verkhnyaya Pyshma illustrates the potential of creative arbitrage within the advertising and communications, media, and journalism sectors. The analysis explores the transition from creative arbitrage, leveraging external resources, to creative sovereignty, fostering internal capacity building, and the resulting spillover effects on the broader economy. The role of institutional inertia and information and communication technologies in shaping this trajectory is also investigated. The author declares no conflicts of interests.