The craft, fashion, and cultural-products industries of Los Angeles: Competitive dynamics and policy dilemmas in a multisectoral image-producing complex

The general functional characteristics of the craft, fashion, and cultural-products industries (cultural-products industries for short) are described, and the tendency of these industries to form dense locational agglomerations is analyzed. These agglomerations are not just foci of economic activity, but also places with definite cultural and social identities that can be turned into competitive advantages. The growth of the cultural-products industries in Los Angeles over the decades following World War II is described and two main groups of sectors are identified. A first group, characterized especially by the entertainment sectors, has risen to world-wide significance through its ability to maintain high levels of skill, innovativeness, and product quality. A second group, characterized especially by the furniture and jewelry industries, is stagnant or declining and has tended to pursue competitive strategies marked by insistent labor-cost cutting. A series of policy issues is then dealt with, paying particular attention to the tasks of: 1) re-orienting those sectors that are falling behind in the competitive race; and 2) maintaining the dynamic, synergistic qualities of the cultural-products industrial complex as a whole over the long run.