Creative industries tend to cluster in specific places and the reasons
for this phenomenon can be a multiplicity of elements linked mainly to
culture, creativity, innovation and local development. In the
international literature, it is pretty well recognized that creativity
is frequently characterized by the agglomeration of firms so that
creative industries are not homogeneously distributed across the
territory but they are concentrated in the space. Three theories are
becoming the dominant theoretical perspectives in agglomeration
economies theory and they are increasingly being applied in industrial
clusters analysis to study the effect of clustering industries. The
theories are Marshall’s theoretical principles of localization
economies, Schmitz’s collective efficiency and Porter’s five-diamond
approach. However, those have adequately theorized neither the
institutionalization process through which change takes place nor the
socio-economic context of the institutional formations of clustering
creative industries. This text begins by reviewing three main theories
to more fully articulate institutionalization processes of an economic
institution. Specifically, this paper incorporates new institutional
economics (NIE) and new economic sociology (NES) to explain the
processes associated with creating institutional practices within
clustering creative industries. Both streams of institutional theory
constitute that economic organizations are socially constructed. Next,
this text proposes the framework that depicts the socio-economic context
better and more directly addresses the dynamics of enacting, embedding
and changing organizational features and processes within clustering
creative industries. Some pertinent definitions are offered to be used
in a conceptual framework of research about how economic institutions
like clustering creative industries constitute their structures.