Is Creativity-Based Urban Development Possible in Turkey? An Evaluation of Small Cities on the Aegean Coast

Abstract

Contemporary urban development policies require a thorough understanding of local dynamics. It is crucial to comprehend the roles played by all actors and mechanisms involved in the process, including policy-making institutions, to ensure effective policy making. Understanding the concept of creative industries and cities is also necessary for contemporary urban development. Turkey needs a clear strategy for developing a creative economy on both the national and metropolitan levels. Progress has been limited so far, with no sign of significant improvement in the near future. Recent developments show that small cities have started to play a role in initiating the development of creative economies. Migration to small- and medium-sized cities changes human geography, and urban development policies are becoming more flexible to accommodate these conditions. This paper focuses on three small coastal cities with similar climatic, economic, and socio-cultural characteristics and agriculture and tourism-based economies in Turkey (Avyalik, Bodrum, and Urla) and evaluates the local dynamics to understand what fosters creativity-based development. These cities possess significant potential for the development of cultural industries; however, in addition to the lack of awareness, interestingly, their suitable environment does not have a direct impact on triggering this development.

1. Introduction

The creative economy transforms creativity and intellectual capital into goods and services [1]. The creative economy has an important role in the development and sustainability of national economies that promote creativity and the widespread use of information technology. It can contribute to the advancement of developed and developing countries despite the lack of government support and public policies [2]. This paper aims to raise awareness about the importance of a creative economy in small cities in Turkey. Three coastal settlements were selected in western Turkey, Ayvalik, Urla, and Bodrum (see Figure 1), to investigate whether they provide a suitable environment for creativity-based urban development. Ayvalik, Bodrum, and Urla have been experiencing immense population growth beyond their capacities in recent years; however, most of these newcomers are retirees from major cities. While local governments are looking for solutions to mitigate the problems of this sharp population increase, they are not aware of the real economic potential the cities possess, which leaves the economic development dependent solely on tourism alone and results in financial loss and unfavorable spatial conditions.

The literature examining the creative economy and regional development relationships focuses primarily on large cities and metropolitan areas. Small cities are often overlooked because they are not expected to provide the necessary preconditions and environment that attract creative people. Focusing on density, diversity, and tolerance augments the competitive disadvantages of small towns and perpetuates the ‘big and creative’ and ‘small and non-creative’ dichotomy. However, creativity-based strategies are being successfully implemented in a number of small communities around the world to transform and diversify their local economies in response to industrialization, globalization, and digital trends.

During post-modern societal changes, some cities try to overcome the complications caused by the decline in traditional industrial production by transforming high-tech and knowledge-based enterprises [3]. This study focuses on a creative economy as a strategic development tool for economic transformation in small cities, as they are gaining more importance over time as the drivers of economic change. Accordingly, this project aims to analyze the impact of local dynamics on the development of a creative economy. The main research question is which local dynamics affect the development of a creative economy and creativity-based urban development and to what extent and under what conditions. Creativity becomes an economic concept if the final product creates economic value; a sociological concept if it is related to the creation of cultural and moral values; a business concept if it is related to the product development process of firms; or a synthesis of all of them [4]. The belief that economic activities are based on the tangible outcomes of production, which used to be the common conception in the Industrial Revolution era, has evolved since the 1960s. The ways in which economic activities are carried out (structural changes in the economy), technological developments, changes in consumer preferences, and, most importantly, information, which has become the main factor for the economy, have put creativity at the center. In the new economic system, where knowledge and technology have become a form of capital and all other types of capital are in continuous flow [5], the creative economy sectors stand out. The new economic system prioritizes and supports knowledge accumulation and production at the individual level. Until now, creative sectors used to accumulate in large urban areas where the creative class resides. However, this trend has taken a turn, as small- and medium-sized cities are taking steps towards creativity-based development, making this a movement in the global arena and a critical tool for urban policy in the economic and spatial development of cities [6]. On the other hand, small-scale cities attract creative people with their natural resources [7], intimate cultural life, and intellectual capital by offering an escape from the overcrowded life of big cities. However, local actors’ awareness level is crucial in creativity-based urban development [8].

There is a lack of research on what influences the development of creative industries in a particular city. Exploring Turkey’s position and potential and the necessary steps for the future regarding the creative economy is crucial considering global development trends. Considering the multidimensional nature of the concept of creativity, small cities seem to have more advantages than their bigger counterparts. This study’s unique contribution to the topic lies not only in its focus on small cities but also in its efforts to engage local actors and create a participatory environment. It also aims to assess under which circumstances creativity-based urban development is possible for cities with different characteristics. Moreover, the fact that this study included local actors in the ongoing discussions demonstrates that it also contributed to raising awareness in the local community about the creative economy, which makes it unique in Turkey.

The following sections summarize the literature, research background, current situation in Turkey, details of the cases, methodology, and findings of field research. Section 4 summarizes the approaches to the topic and the results of the case study.

2. Literature Review

The 2018 World Conference on the Creative Economy in Indonesia, the 2019 Global Summit on the Orange Economy in Colombia, and the declaration of 2021 as the International Year of the Creative Economy by the United Nations support the idea that creative economies should spread globally. A creative economy provides economic development, innovation, and employment; includes all segments of society; supports sustainability of developing or transition economies; increases diversity; produces quality and high-value products; and encourages research and innovation [9]. The creative economy is among the youngest and fastest-growing sectors in the world, doubling its export share between 2005 and 2019 [10]. It is one of the emerging sectors in Europe, becoming essential for economic growth with a high contribution to the GDP of these countries and the employment opportunities it creates [11]. In G20 countries, the cultural and creative sectors account for up to 2% of jobs and 1% to 3% of added value; in the UK, the creative economy sector is responsible for around 6% of total GDP; and in Indonesia, the creative industry contributes 7.4% of total GDP and 14.3% of Indonesia’s workforce [12].

One of the recent debates on the creative economy revolves around its relationship with sustainable economic growth and development. The sectors in the creative economy are considered more advantageous in attracting investment and qualified labor as they contribute to economic growth with high-value products while being highly flexible and sustainable [13]. The development of creative industries is mostly independent from the availability of natural resources. Additionally, it supports the reusability of existing resources through innovative solutions. Creative industries are considered ecologically sustainable as they do not directly add to environmental pollution and socially sustainable because they meet the needs of society and create opportunities for youth and women [11]. In recent years, creative industries have been a central subject of theoretical debates and local/regional/national policies, especially as they are seen as essential to achieving the Sustainable Development Goals.

2.1. Creative Economy and Space: The Creative City

The conceptualization of the creative economy dates to the work of Howkins in 2001 [8]. In his pioneering work, Howkins states that neither creativity nor the economy is new, but he points out that the 1990s changed the nature of jobs and, more broadly, the nature of the economy fundamentally. He defines a creative economy as the integration of creativity and the economy—the creative product—which he believes is a novelty [14].

Creative people are seen as the key to economic growth and prefer to live in places with high diversity, innovation potential, and tolerance. The creative city concept emerged in the 1980s and refers to urban spaces that focus on creative problem solving and unlocking the potential of cities from a creative point of view [15]. In ref. [15], which defines creative city dynamics based on research in European cities, the author argues that while urban growth has accelerated in Asian countries, European nations’ industrial and production-based growth was replaced by intellectual-capital-based economic activity, from production to distribution.

This new form of economic activity led to the concept of creative cities. In other words, creative people produce creative industries, and creative industries form creative places that, in turn, attract and incentivize creative people. These processes and concepts are in constant flux [7]. As [6] argues, creative cities result from a strategic planning process. All in all, creative cities are places where creative industries are the dynamo of economic activities. Creative cities aim to foster open-mindedness, free thinking, and creativity. This, in turn, contributes to social and economic development by creating an environment that attracts new businesses and startups. This diverse community contributes to the creative atmosphere, amplifying creative and knowledge industries, integrating into global networks, and leading to new initiatives [6,16].

While promoting creativity as a part of urban policy has been around for a while, the strategies used to achieve this goal have changed over time. Present-day urban policies include initiatives that foster cities’ cultural and creative potential, making culture easily accessible through place-making and through approaches to revitalizing industrial zones that have been affected by deindustrialization or have ceased to develop [17].

Urban development policies incorporate sustainable and socially responsible strategies and measures to promote innovation and creativity [18,19]. Creativity is increasingly recognized as a crucial component of economic development in cities, both big and small. In its 2019 report on The Cultural and Creative Cities Monitor, the United Nations highlighted the significance of small- and medium-sized cities in the creative economy. As a creative economy can drive economic growth, many countries are implementing policies and programs to strengthen the role of creative industries in national and local economies [20,21,22,23].

2.2. Small Cities

Today, an increasing number of studies focus on small and medium cities. One of the most recent studies examined innovation, entrepreneurship, cultural tourism, technological development, and public policy in medium and small cities [24].

It is a common misconception that large cities are the primary home of creative people, but the contrary is also very common [11,25]. The concentration of creative people in such places depends on the place’s technological and innovation capacity, openness to diversity, and conducive environment for creativity. Although large cities and metropolitan areas are considered the most vibrant regarding economic activities and social life, this is not always the case in all countries and regions, especially in European countries [18]. Ref. [18] states that in Europe, 38% of the population lives in cities with a population between 5000 and 100,000, and 30% lives in cities with a population over 100,000, which shows that fostering creativity in small- and medium-sized cities is a way of modern urban development [23].

Creative-economy-based local development undoubtedly offers significant advantages for cities. Therefore, small cities must attract and accommodate creative industries, creative jobs, creative individuals, and creative enterprises/entrepreneurs; reconfigure spatial planning; enhance creativity-focused education; and provide adequate public services [23]. There is a positive interaction between a creative economy and small- and medium-sized cities. The local values offer a series of advantages for these industries. Direct communication is crucial in building trust-based relationships among individuals and facilitating information exchange, collaboration, and production. In recent years, sectors and workforces associated with innovation and creativity showed a trend toward small- and medium-sized cities because small towns are better equipped to organize public services and offer better socio-economic conditions [26]. The role of creativity in non-metropolitan areas differs from that in metropolitan areas, but this does not diminish its effectiveness. Research shows that creativity can be even more critical for revitalizing the economy in small towns and rural areas than in metropolitan areas. In many cases, small cities successfully attract the creative class if they benefit from the policies that support the creative economy [27].

According to [7], five essential factors must be considered while analyzing creative places: governance, the quality of life, social and symbolic capital, existing economic activities and cultural opportunities, and accessibility. While small cities already possess these characteristics, their uniqueness becomes even more critical as globalization causes uniformity among places. Their local cultural values hold a competitive advantage for increasing employment opportunities and income generation [20].

Furthermore, small- and medium-sized cities and rural areas have become more attractive since the COVID-19 pandemic. The conditions that small towns offer led to increased migration, resulting in newly emerging neighborhoods that embody new lifestyles and work patterns [28]. Refs. [29,30,31] highlight that recent developments have significantly impacted life in central business districts, particularly in areas with a high concentration of offices. City centers are becoming less popular for work, although they remain popular for socializing. This preference shift presents an excellent opportunity for small cities, as they can now attract a population that would have previously preferred larger cities. According to a study conducted in the United States, small- and medium-sized cities attract creative people with their scenic environment, cultural richness, and human connections, and the rising cost of living in big cities has contributed to this decision in recent years [30].

2.3. Research Background of Turkey

According to [32], in Turkey, creativity is concentrated in Ankara and Istanbul. Using an index, ref. [33] investigated the connection between creativity and development in Turkish cities. Their findings showed that the creative city ranking and the level of development are directly related. In 2020, ref. [34] evaluated Turkey’s international competitiveness in the creative economy by analyzing import–export data. Ref. [35] studied Istanbul’s cultural industries and used secondary data to examine the creative economy. Ref. [36] conducted a qualitative analysis to reveal any relationship between creative industry education in Istanbul and the workforce needed by the industry, where they found no strong relationship. Ref. [37] created a cultural economy inventory for Istanbul.

The abovementioned studies show that the research on the creative economy in Turkey is mainly limited to the national and regional level (NUTS 1-2) or Istanbul. This research, unfortunately, did not lead to policy, strategy, or action plan development [33]. The most recent national development plan, which covers 2019–2023, does not have a specific policy for creative industries or the creative economy. While this plan is aimed at developing industry and exports, there is no comprehensive approach to support creativity. However, it is worth mentioning that there are targets and policies for sectors that can be included in the creative economy [38]. The Ministry of Trade has a program to support culture and creative industry services; however, it does so without a clear vision or goal. Lastly, there is a competitive sectors program run by the Ministry of Industry and Technology, which encompasses some of the projects supported within the scope of the creative industry in Turkey.

Although Istanbul, Ankara, and Izmir lead the way, they only account for 3% of the total value added in the country according to 2017 data. The share of employment in the creative economy corresponds to 1% of total employment, while the total number of enterprises is at 3% [39]. Istanbul, the hub of the creative economy in Turkey, accounts for half of the total employment and around 80% of total earnings in creative industries. These industries include television, advertising and film, print media, and performing arts, similar to the rest of Turkey [35]. Although developed cities like Izmir and Ankara also have a small share in the creative economy, it is still considerably smaller than Istanbul.

Turkey has made some progress in developing creative industries, particularly in cities part of the UNESCO creative cities network. While these cities mainly focus on gastronomy, music, and folk arts, Istanbul is the only one in the design category. The Istanbul Development Agency (ISTKA) plays a significant role in supporting the creative economy through its ongoing Creative Industries Financial Support Program. The British Council also contributes to developing the creative industry by offering a hybrid learning program. Although these initiatives still have a long way to go, their efforts are important in raising awareness. Overall, Turkey needs a clear strategy for developing its creative economy on both national and urban levels, and progress has been limited so far, with no sign of significant improvement in the near future. Unfortunately, the 12th Development Plan, 2024–2028 [40], still offers no strategy or roadmap for the development of the creative industries in Turkey for the upcoming five-year period.

3. Is Creativity-Based Urban Development Possible in Turkey?

When cities adopt a creative-industry-based approach to development, the creative and innovative ecosystem allows other cultural, economic, and social conditions to flourish as well. This multi-faceted potential attracts interest from many disciplines, such as planning, economics, and economic geography [19]. Creative-industry-based development has been on the agenda of urban policies for about two decades, and the relevant professional groups and local authorities see creative cities as a development strategy [6,41]. Small- and medium-sized cities are becoming more attractive to creative industries as they look to develop. Even though it is thought that there is a lack of the necessary infrastructure to attract creative industries, two significant changes have occurred in recent years that resulted in a turn of events. The first is the population mobility towards small- and medium-sized cities, which accelerated significantly with the pandemic, and the second is the inability of these cities to develop innovative strategies to revitalize their economy.

These cities, whose economy depends on a single sector and therefore cannot provide economic diversity, usually fail to maintain or transform their traditional production and use available resources. This usually leads to unfavorable living conditions and eventual environmental degradation. However, the need for other sectoral activity opens up space where creative industries thrive. This study aims to discuss these issues through the lens of case studies.

3.1. Purpose and Question of the Study

The main purpose of the study is to examine the role of a creative economy in small cities in the new competitive environment at the global level (I); to evaluate the awareness of the subject (II); to investigate whether it is possible to develop a creative economy and urban policies that support it in small cities (III); and to determine how creativity-based urban development is shaped according to local dynamics (IV).

The unique impact of this study lies in its attempt to organize and conduct fieldwork together with local communities and organizations to discuss the opportunities and policies that foster development. The main research question is whether local differences (awareness, organization, institutionalization, institutional capacity, financing sources, collaborations, policies, etc.) have any impact on the development of a creative economy and the effectiveness of urban development policies.

3.2. Characteristics of Cities

This section outlines the core characteristics of these three coastal settlements, their economic activities, and their potential regarding cultural industries. The three case cities are located on the Aegean coast of Turkey (see Figure 1).

Ayvalik is an important coastal tourism center for domestic tourism in Turkey, sprawled over a relatively large island area with two city centers. One major problem is that increased tourism activity during summer months causes infrastructure-related problems in the city. Olive trees are the most substantial agricultural output and have great value in olive oil production in Turkey. In the past 20 years, migration of retired people from big cities to Ayvalik has increased the town’s population and created further infrastructural problems. This migration wave required new housing areas to be developed. Ayvalik is on the UNESCO provisional heritage list in the Industrial Heritage—Industrial Landscape category.

Bodrum also has a polycentric structure, consisting of urban and rural settlements, and is a trendy holiday destination. Like Ayvalik, Bodrum attracts retirees with its mild climate and Mediterranean architecture. Its long-standing seasonal infrastructure problem has spread throughout the year, and environmental pollution has reached alarming levels. In addition to agricultural production, traditional craftsmanship, such as wooden yacht manufacturing and leather sandal making, has become extinct, and tourism and service sectors have replaced all other economic activities.

Urla has a slightly different trajectory as it is located within the Izmir Metropolitan Area, with the campus and technology center of one of the most important universities in Turkey within its borders. However, the monocentric settlement is still predominantly rural, and its economy relies on seasonal tourism. The population increases in the summer months due to secondary housing. Urla attracts day visitors, especially with its culinary fame and well-known festivals.

Unlike Ayvalik, Bodrum and Urla are experiencing increasing migration of educated people. Young skilled labor is higher in Bodrum and Urla, but most of this labor force is legally registered elsewhere. For example, young labor force in Bodrum is registered in Istanbul, whereas Urla’s labor force is registered in Izmir, the nearest metropolitan area, resulting in a lower share of young skilled labor in the local economy (see Table 1).

Figure 1. Location of the cities (Ayvalik is within the borders of Balikesir province with a population of approximately 72,000, Urla is within the borders of Izmir Metropolitan Area with a population of approximately 70,000, Bodrum is within the borders of Mugla province with a population of approximately 190,000) (source; TUIK, 2022) [42].

Figure 1. Location of the cities (Ayvalik is within the borders of Balikesir province with a population of approximately 72,000, Urla is within the borders of Izmir Metropolitan Area with a population of approximately 70,000, Bodrum is within the borders of Mugla province with a population of approximately 190,000) (source; TUIK, 2022) [42].

Table 1. General characteristics.

AYVALIK	BODRUM	URLA
A coastal city in the Aegean region Small-sized cities - Dependent economies (agriculture and tourism) - Skilled but mostly retired immigration (in recent years trend to settle cities) - Well educated but older population - Seasonal production
It has a road network connecting three major cities Old settlement In UNESCO Tentative Heritage List Population increase during the summer tourism season The leading sector is Agriculture with 46%, the service sector with 44% The dominant agricultural product is olive. Ayvalık olive is a geographically indicated product There is one vocational school in the city.	It has become the center of the tourism and entertainment industry after the 1980s Old settlement The district's economy is based on tourism, trade, handicrafts, fishing, forestry and plant production Tobacco and olives are at the forefront in crop production International destination in the tourism sector (especially marine tourism).	It has a strong road transportation network There are two university campuses: Crafts and gastronomy; Software and high technology It is preferred for settlement because it is accessible and has physical and climatic advantages There are two faculties in the city Service and agriculture sectors constitute the leading economic sectors of the city

Source: authors (see symbolic characteristics and heritage in Figure A1).

Table 1. General characteristics.

AYVALIK	BODRUM	URLA
A coastal city in the Aegean region Small-sized cities - Dependent economies (agriculture and tourism) - Skilled but mostly retired immigration (in recent years trend to settle cities) - Well educated but older population - Seasonal production
It has a road network connecting three major cities Old settlement In UNESCO Tentative Heritage List Population increase during the summer tourism season The leading sector is Agriculture with 46%, the service sector with 44% The dominant agricultural product is olive. Ayvalık olive is a geographically indicated product There is one vocational school in the city.	It has become the center of the tourism and entertainment industry after the 1980s Old settlement The district's economy is based on tourism, trade, handicrafts, fishing, forestry and plant production Tobacco and olives are at the forefront in crop production International destination in the tourism sector (especially marine tourism).	It has a strong road transportation network There are two university campuses: Crafts and gastronomy; Software and high technology It is preferred for settlement because it is accessible and has physical and climatic advantages There are two faculties in the city Service and agriculture sectors constitute the leading economic sectors of the city

Source: authors (see symbolic characteristics and heritage in Figure A1).

The spatial distribution of creative industry activities in cities varies. In Ayvalik, there is an accumulation in the traditional center, the main square, and its surroundings; in Bodrum, it starts at the city center and, to a lesser extent, in the other parts of the polycentric structure; and in Urla, a similar layout to Ayvalik is observed in the main square and connected streets.

Festivals take up a significant portion of the creative infrastructure. Agriculture, gastronomy and harvest, culture, arts, sports, and traditional sports festivals are organized between January and June in Ayvalik, Bodrum, and Urla. In Bodrum, international jazz, dance, and modern dance festivals and international yacht and sailing regattas are well established, increasing Bodrum’s international recognition. In Ayvalik, international olive harvest, film, and music festivals also attract global attention. Urla has fewer festivals, but the awareness and impact of festivals are widespread (see Figure A1).

The strengths and weaknesses of these cities are quite similar. While their natural and cultural heritage sites, accessibility, urban identity, educated population, and local production and values can be regarded as strengths, their single-sector economic structure (mostly agriculture and/or tourism), inability to monetize their characteristics and unique values, inefficiencies in protecting their cultural and natural conservation sites, and the aging population are among their weaknesses.

The city of Ayvalik also stands out with its unique cuisine and local products that in time have become well-known national brands. The city has the opportunity and the potential to attract economic capital, but the cultural, historical, spatial, and natural areas are under threat due to mining and uncontrolled tourism.

On the other hand, Bodrum is an international tourist destination (a strength), a situation that renders it economically dependent and vulnerable (a weakness). Again, the city has a natural, historical, and cultural heritage with immense value, but they are under constant pressure due to the increased demand for housing projects and other infrastructure constructions.

Urla’s proximity to Izmir creates a significant opportunity. Some university faculties are also located in Urla, and the presence of technology-related fields feeds the development of a creative economy (see

Table 2. SWOT analysis.

	Strengths	Weakness	Opportunıtıes	Threats
Ayvalık	- Accessibility - Cultural /industrial heritage/UNESCO - Natural areas - City identity and history - Local production value and branding - National/international festivals -agriculture - Culture of organisation cooperatives	- Dependent economy (tourism and agriculture sector) - Natural and cultural areas’ destruction - Informal economy - Quality sectors lack of contributions to the economy - Elderly population - Physical infrastructure-low quality of life - Physical environment	- Developers/national capital attention - Accessibility - Branding products-unique products - Gastronomy - Cultural heritage and background - Cross borders cooperation	- Construction-mining projects - Lack of preservation natural, historical and cultural areas/sites-unprotected urban structure/cultural/industrial heritage sites
Bodrum	- Accessibility - Tourism-international destination - Historical background and cultural heritage diversity - Social diversity - Natural areas’ quality - Local productions (gulet, sandals, mandarin, etc.…) - Education in arts/university - International art festivals and other ritual activities for the community	- Dependent economy (tourism sector) - Dominant nature of construction sector/over construction - Natural life destruction - Quality sectors lack of contributions to the economy - Physical infrastructure/environment - Elderly population	- International cooperation-developers’ attention - Well educated immigrants - Local unique products (yacht) - Strong culture and tourism infrastructure/background - Cross borders cooperation	- Immigration - Over construction destruction of land - Lack of preservation for natural sites
Urla	- Accessibility - Near Izmir - Tourism/gastronomy-wind surf - University’s presence - International festivals - Alternative routes (hiking, biking and local production) - Nature - Long costs	- Limited accessibility for cultural activities - Natural life destruction - Quality sectors lack of contributions to the economy - Elderly population	- Nature - Near Izmir - Technology - University-young population-well educated - High quality of life	- Lack of preservation for agricultural areas/ soil quality - Underground/ useless archaeological sites

Source: author.

).

3.3. Current Policies

To develop a set of future guidelines, all the documents created by the responsible institutions and actors were thoroughly examined.

To reach 2023 goals, the documents of the Development Agency (GMKA) [43] highlight actions such as fostering entrepreneurship; ensuring social integration; enriching social opportunities; protecting environmental values; improving infrastructure; strengthening logistics, transportation, and communication networks; increasing productivity and quality in the agricultural sector; developing the tourism sector; enhancing institutional infrastructure in enterprises; and improving R&D, innovation, and branding. Another important document that shapes all neighboring cities’ futures, the 1/100,000 scale Balıkesir-Canakkale region Environmental Plan [44], recommends the development of olive-based production methods; agriculture, fishing, and tourism activities; and the growth of manufacturing in sub-sectors such as olive oil, soap, welding, cold blacksmithing, carpentry, and agricultural equipment as the 2040 objectives for Ayvalik’s economy. Underlining the importance of local architecture (old Greek residential area) for cultural tourism, the plan states that protecting cultural values will directly contribute to tourism and suggests that tourists’ attention (especially from the Aegean islands) should be directed towards local products. The Strategic Plan of Ayvalik Municipality includes clauses on improving institutional capacity; urban renewal; promoting social and economic welfare; increasing cultural, arts, tourism, and sports activities; creating a healthy and livable environment; and ensuring security. Although the strategic plan does not directly develop strategies and roadmaps for creative industries, it does include some projects/activities that will lay the groundwork for these industries.

The Development Agency (GEKA) [45], responsible for Bodrum and its surroundings, highlights tourism with a focus on the congress tourism infrastructure for 2023. In areas where coastal tourism is dominant, the development of water sports such as diving, sailing, surfing, and kitesurfing and yacht tourism is proposed. For other regions, completing the infrastructure of archeological sites and museums, renovating theaters in ancient cities to elevate them to host national/international events, developing cruise tourism, and increasing the capacity of Bodrum Airport for cargo transportation are among other recommendations. The Aydın-Mugla-Denizli Planning Region 1/100,000 Scale Environmental Plan [44] sees tourism and citrus production as leading sectors in the development of Bodrum. The plan identifies specialty crops, such as olives and citrus fruits, as promising and recommends transforming these products into added-value products in small enterprises, which might add to the touristic potential of the city. The Strategic Plan of Bodrum Municipality lists the following strategic objectives: developing a local government model in line with modern municipal norms; developing Bodrum’s economic potential; turning Bodrum into a cultural center; creating social municipal practices at the highest level; developing accurate and feasible urban plans; and creating a sustainable city that respects nature.

It is impossible to separate Urla from the Izmir Metropolitan Area in the Plan and Policy documents; however, as a specialized document, The Izmir Development Agency (IZKA) [46] Regional Plan covers Urla and its surroundings. The presence of the university and Technopark in Urla benefits the area in terms of technology and entrepreneurship. Strengthening and clustering innovation and design capacity and improving the entrepreneurship ecosystem, businesses, and the investment environment are among the development objectives for Urla. In practice, sustainable production and service provision are prioritized, and the region’s cultural and tourism potential is prioritized for competitiveness.

3.4. Methodology

Adopting a multiple-case approach, this study analyzes the local dynamics that play a role in creativity-based urban development. This paper is based on a research project supported by the ITU Research Foundation and carried out in Ayvalık, Bodrum, and Urla settlements between 2019 and 2021. Their relatively developed seasonal economies based on tourism and agriculture and rapid population growth render these coastal settlements suitable for this research. Their accessibility and climatic conditions are also facilitating factors. The fieldwork constituted interviews and meetings with local institutions and organizations. In line with the research aim and design (see Figure 2), firstly, the approaches and variables of conceptual studies were examined; simultaneously, the characteristics of the settlements and local actors were identified and communication was established with the main actors (Table 3 and Table 4).

The first field visits to each city lasted 3–4 days. The aim was to collect secondary data, conduct initial mapping, meet the actors, and introduce the project. With the help of key actors, data collection (see Table 3) was completed, and the first introduction and awareness meetings were held.

While these meetings were informational and introductory, relevant actors willing to support the team were identified. The pool of actors was adjusted accordingly. After the first round of visits, online interview forms were sent to key actors (Table 3 and Table 4). Interview forms were prepared in four separate groups (see Figure A2).

Figure 2. Method diagram.

Figure 2. Method diagram.

The research team presented the current situation and the initial findings of the interviews during the second round, and actors were encouraged to identify the critical problems. The next visit consisted of group meetings, where the outputs of the previous sessions were discussed. The critical problems were clearly defined to lead to strategies and solutions in the next stage (Table 3).

In the last round of visits, focus group meetings were organized with the identified actors to develop creativity-based urban development strategies. The strategies are presented in eight categories (see Tables 10–12).

Table 3. Process of the study.

Start	Desk Research (DR)	First Round (FiR)	Second Round (SR)	Third Round (TR)	Fourth Round (FoR)
Theoretical framework Literature review Modelling of research process and methodology	Data mining Data collecting Analysing of the actors Connecting with main ¹ and key ² actors	Data collection on site Creative mapping Visiting the main actors Group meeting (I) (promotion of project, raising awareness, presentations) Meet main and key actors Identifying actors to work with	Group meeting (II) (presenting current situation, first results of interviews and discussions) Identifying problems	Group meetings (III) (presenting problems) Discussing solutions	Focus group meetings Developing urban strategies Developing creativity based strategies
		interviews/online

Source: author. ¹ The main actors are those whose strong relationships with other actors have a dominant role in the development of the city, mostly public are semi-public institutions. ² The key actors are civil organizations with a strong local presence. Participants of the group meetings were invited through announcements sent to the members/networks of the municipalities, city councils, chambers of commerce, professional chambers, and civil organizations.

Table 3. Process of the study.

Start	Desk Research (DR)	First Round (FiR)	Second Round (SR)	Third Round (TR)	Fourth Round (FoR)
Theoretical framework Literature review Modelling of research process and methodology	Data mining Data collecting Analysing of the actors Connecting with main ¹ and key ² actors	Data collection on site Creative mapping Visiting the main actors Group meeting (I) (promotion of project, raising awareness, presentations) Meet main and key actors Identifying actors to work with	Group meeting (II) (presenting current situation, first results of interviews and discussions) Identifying problems	Group meetings (III) (presenting problems) Discussing solutions	Focus group meetings Developing urban strategies Developing creativity based strategies
		interviews/online

Source: author. ¹ The main actors are those whose strong relationships with other actors have a dominant role in the development of the city, mostly public are semi-public institutions. ² The key actors are civil organizations with a strong local presence. Participants of the group meetings were invited through announcements sent to the members/networks of the municipalities, city councils, chambers of commerce, professional chambers, and civil organizations.

Table 4. Typologies of actors and numbers of participation.

Typologies	Ayvalık	Bodrum	Urla
Association	134	325	137
Cooperative	20	130	25
Foundation	1	15	15
Union	1	5	2
Professional Chamber ¹	4	10	3
Initiative	1	1
Platform	1	4
TOTAL	162	490	182
Organizations in creative industries ²	12	73	25
Sent invitation for interview	12	27	25
Reply to interview	6	9	3
Group meeting I	32	27	11
Group meeting II	37	12–9 ³	6–4 ³
Group meeting III	14	11–8 ³	-
Focus group meetings	21	6–11–7 ³	-

Source: author. ¹ Chambers of commerce and industry are not included in typology numbers, but are included in interview numbers; ² creative industry organizations include culture and arts, R&D, and entrepreneurs; ³ two or three separate meetings. In the organization of the meetings, it was hard to arrange a timing for all, which negatively affected the number of participants, and this was the main obstacle to the study.

Table 4. Typologies of actors and numbers of participation.

Typologies	Ayvalık	Bodrum	Urla
Association	134	325	137
Cooperative	20	130	25
Foundation	1	15	15
Union	1	5	2
Professional Chamber ¹	4	10	3
Initiative	1	1
Platform	1	4
TOTAL	162	490	182
Organizations in creative industries ²	12	73	25
Sent invitation for interview	12	27	25
Reply to interview	6	9	3
Group meeting I	32	27	11
Group meeting II	37	12–9 ³	6–4 ³
Group meeting III	14	11–8 ³	-
Focus group meetings	21	6–11–7 ³	-

Source: author. ¹ Chambers of commerce and industry are not included in typology numbers, but are included in interview numbers; ² creative industry organizations include culture and arts, R&D, and entrepreneurs; ³ two or three separate meetings. In the organization of the meetings, it was hard to arrange a timing for all, which negatively affected the number of participants, and this was the main obstacle to the study.

3.5. Findings

3.5.1. Interview Findings

As explained in the methodology, the results of the interviews, reflecting the views of key actors, are summarized in

Table 5. Interviews with local governments.

	Ayvalik	Bodrum	Urla
Institutional Problems		- Economic supports - Social contribution - Legal regulations - Cooperations	- Economic situation - Social status - Political situation/interventions - Legal status
Creative Economy Potential		- Advanced tourism - Farming and fishing - Handicrafts - Software	- Advertising - Design - Digital design - Software
Creative Economy Strategies		- Planning national and international festivals - Improve local businesses - To increase diversity in tourism and to spread tourism to 12 months	- To be a member of an international association for the development of creative tourism - To establish a techno park in cooperation with the university

Source: author.

, Table 6, Table 7 and Table 8. The responses are categorized according to the cities’ potential, problems, and proposed solutions.

The discussion centered around the characteristics and potential of the three cities and the reasons for their underdevelopment in the Professional Chamber Interviews (see Table 6).

Local organization interviews were conducted with various associations (Table 7). The main themes were as follows: the current situation and potential of the cities, the work of these organizations within the scope of the creative economy, their institutional problems, and the external problems they face (see Table 7).

The main themes of the City Council interviews were the current situation, the potential of the cities and the council’s work, needs, and problems (see Table 8).

The common actions of Bodrum and Urla municipalities are organizing festivals, cooperating with NGOs and other organizations, and strengthening tourism and agriculture. Similarly, even though other sectors’ potential for creative economy came up in the interviews, the municipalities prioritize tourism over other sectors.

Chambers of Commerce, Industry, and Craftsmen argue that cities do not mobilize their potential, and in Bodrum and Urla, the lack of development is explained by population growth and lack of investment in sectors other than tourism.

Local civic organizations emphasized that these cities possess unique characteristics and skilled populations, but fail to utilize them. Some of these characteristics are common to all three cities. Additionally, local organizations are more active in taking action that nurtures creative capacity than other actors.

In parallel to the other interviewees, city councils also stated that sectors other than tourism need to be supported for an even development.

Table 6. Interviews with chambers.

	Ayvalık	Bodrum	Urla
About city	- Has many features and potentials: Agriculture-based industry Industry Logistics Service Trade - Underdeveloped	- Unable to capitalize on their potential: Advertising Agriculture Agriculture-based industry Cultural Heritage, Museum, Library Design Handicrafts Industry Music Performing arts Trade - Undeveloped: Tourism activities are not spread over 12 months Not evaluating another sector	- Rapid development without using its potential correctly due to rent - Untapped sectors and potentials: Advertising Agriculture Agriculture-based industry Design Handicrafts Industry Livestock Logistics Music - Undeveloped: Excessive number of retired/elderly population against young population The immigrant population does not carry out any activities aimed at developing the city
Instutional Problems	- Economic situation - Social situation - Administrative consciousness/intention - Political situation/interventions - Legal status	-	- Economic situation - Social situation
Creative Economy Potential	- Advertising - Software - Digital design - Design - Cultural Heritage, Museum, Library	-	-

Source: author.

Table 6. Interviews with chambers.

	Ayvalık	Bodrum	Urla
About city	- Has many features and potentials: Agriculture-based industry Industry Logistics Service Trade - Underdeveloped	- Unable to capitalize on their potential: Advertising Agriculture Agriculture-based industry Cultural Heritage, Museum, Library Design Handicrafts Industry Music Performing arts Trade - Undeveloped: Tourism activities are not spread over 12 months Not evaluating another sector	- Rapid development without using its potential correctly due to rent - Untapped sectors and potentials: Advertising Agriculture Agriculture-based industry Design Handicrafts Industry Livestock Logistics Music - Undeveloped: Excessive number of retired/elderly population against young population The immigrant population does not carry out any activities aimed at developing the city
Instutional Problems	- Economic situation - Social situation - Administrative consciousness/intention - Political situation/interventions - Legal status	-	- Economic situation - Social situation
Creative Economy Potential	- Advertising - Software - Digital design - Design - Cultural Heritage, Museum, Library	-	-

Source: author.

Table 7. Interviews with local organizations.

	Ayvalık	Bodrum	Urla
About city	- Has many features and potentials: Architecture Creative Industries Cultural Heritage, Museum, Librariy Industry Olive cultivation Software Tourism - Underdeveloped: NGOs, municipalities and chambers are inactive Tourism-oriented activities are limited within certain periods Investments are only for the tourism sector Inability of the young population to attract to the city Managerial problems Lack of peace Failure of NGOs to come together	- Untapped sectors and potentials: Advertising Agriculture Architecture Contemporary art Culture and arts Design Industry Livestock Music Software Tourism Trade Visual arts - It has not used its historical and cultural value, which is an opportunity for branding: Lack of professional work, Lack of awareness Lack of marketing Financial/legal/managerial issues Lack of organization	- Economy unplanned - Sources are not being used - It accommodates groups with high levels of education and strong economic structures - Untapped sectors and potentials: Agriculture Art & Music Cultural Heritage, Museum, Library Design Industry Logistics Performing Arts Software Tourism Trade Visual Arts
Creative Economy Works	- To provide design-oriented short-term trainings - Conducting national/international art workshops - Conduct design interviews - Organizing film/documentary screenings	- Making projects; 1993 Noah’s Ark Istanbul’s Sculpture Street Excavation	- To bring artisans and art together and to encourage artisans to make art - Theatre establishment project
Institutional Needs	- Lack of Corporations - Lack of financial support - Lack of administrative support	- Corporations - Financial supports - Societal expectations - Administrative supports - Sponsor support	- Corporations - Economic supports - Societal expectations - Administrative supports - Legal regulations
Problems in Organization	- Economic/financial condition/structures - Social situation/structures - Administrative consciousness/intention - Political situation/interventions - Legal status	-	- Administrative consciousness/intention - Political situation/interventions

Source: author.

Table 7. Interviews with local organizations.

	Ayvalık	Bodrum	Urla
About city	- Has many features and potentials: Architecture Creative Industries Cultural Heritage, Museum, Librariy Industry Olive cultivation Software Tourism - Underdeveloped: NGOs, municipalities and chambers are inactive Tourism-oriented activities are limited within certain periods Investments are only for the tourism sector Inability of the young population to attract to the city Managerial problems Lack of peace Failure of NGOs to come together	- Untapped sectors and potentials: Advertising Agriculture Architecture Contemporary art Culture and arts Design Industry Livestock Music Software Tourism Trade Visual arts - It has not used its historical and cultural value, which is an opportunity for branding: Lack of professional work, Lack of awareness Lack of marketing Financial/legal/managerial issues Lack of organization	- Economy unplanned - Sources are not being used - It accommodates groups with high levels of education and strong economic structures - Untapped sectors and potentials: Agriculture Art & Music Cultural Heritage, Museum, Library Design Industry Logistics Performing Arts Software Tourism Trade Visual Arts
Creative Economy Works	- To provide design-oriented short-term trainings - Conducting national/international art workshops - Conduct design interviews - Organizing film/documentary screenings	- Making projects; 1993 Noah’s Ark Istanbul’s Sculpture Street Excavation	- To bring artisans and art together and to encourage artisans to make art - Theatre establishment project
Institutional Needs	- Lack of Corporations - Lack of financial support - Lack of administrative support	- Corporations - Financial supports - Societal expectations - Administrative supports - Sponsor support	- Corporations - Economic supports - Societal expectations - Administrative supports - Legal regulations
Problems in Organization	- Economic/financial condition/structures - Social situation/structures - Administrative consciousness/intention - Political situation/interventions - Legal status	-	- Administrative consciousness/intention - Political situation/interventions

Source: author.

The sectors common to all three cities are shown in Figure 3. The sector common to Ayvalik and Bodrum is architecture, while those common to Bodrum and Urla are advertising, design, handicrafts, music, performance arts, and visual arts. In Bodrum, ceramics, modern arts, culture and arts, and production based on traditional handicrafts are prominent, while in Urla, music and craft stand out.

Table 8. Interviews with city councils.

	Ayvalik	Bodrum	Urla
About city	- Untapped sectors and potentials: Agriculture Agriculture-based industry Architecture Cultural heritage, museum, library Logistics Olive cultivation Tourism - It can’t use its potential; Wrong agriculture-livestock policies Failure to improve logistics Failure to carry out marketing/advertising activities Lack of supervision and technical infrastructure Crooked urbanization Perspective on upper income groups and NGOs	- Untapped sectors and potentials: Agriculture Ceramic Cultural Heritage, Museum, Library Handicrafts Industry Livestock Olive cultivation Traditional craft productions, etc.	- Untapped sectors and potentials: Agriculture-based Industry Cultural heritage, museum, library Tourism - Can’t use itself potential: Lack of accommodation options Institutional inadequacies Geographical-cultural dispersion
Instutional Needs	- Cooperation - Financial and administrative support - Social contribution - Legal regulations	- Cooperations - Administrative supports	- Economic situation - Administrative consciousness/intention - Administrative supports - With legal regulations
Problems in organization	- Administrative consciousness/intention - Political situation/interventions	- Economic situation - Social situation - Administrative consciousness/intention - Political situation/ interventions - Legal situations	- Administrative consciousness/intention - Political situation/interventions

Source: author.

Table 8. Interviews with city councils.

	Ayvalik	Bodrum	Urla
About city	- Untapped sectors and potentials: Agriculture Agriculture-based industry Architecture Cultural heritage, museum, library Logistics Olive cultivation Tourism - It can’t use its potential; Wrong agriculture-livestock policies Failure to improve logistics Failure to carry out marketing/advertising activities Lack of supervision and technical infrastructure Crooked urbanization Perspective on upper income groups and NGOs	- Untapped sectors and potentials: Agriculture Ceramic Cultural Heritage, Museum, Library Handicrafts Industry Livestock Olive cultivation Traditional craft productions, etc.	- Untapped sectors and potentials: Agriculture-based Industry Cultural heritage, museum, library Tourism - Can’t use itself potential: Lack of accommodation options Institutional inadequacies Geographical-cultural dispersion
Instutional Needs	- Cooperation - Financial and administrative support - Social contribution - Legal regulations	- Cooperations - Administrative supports	- Economic situation - Administrative consciousness/intention - Administrative supports - With legal regulations
Problems in organization	- Administrative consciousness/intention - Political situation/interventions	- Economic situation - Social situation - Administrative consciousness/intention - Political situation/ interventions - Legal situations	- Administrative consciousness/intention - Political situation/interventions

Source: author.

3.5.2. Meeting Findings

After a series of interviews, the project continued with group meetings with main and key actors (see Table 3) and civilian participants and professionals from universities, development agencies chambers, and city councils who voluntarily contributed to the study.

These meetings were successfully organized in other cities, but interestingly, not in Urla, as the groups above avoided coming together by saying that the city does not need any further development strategies and refused to participate in group meetings where common strategies were discussed. Therefore, recommendations for Urla were formulated based on the interviews and data analysis results.

The outcomes of the meetings (see Table 9) show that Ayvalık can foster creativity-based urban development, starting with strengthening the relationship between agriculture, knowledge, and cultural industries.

The meetings concluded that Bodrum has a fragile economy, dominated by tourism and supported by agriculture in more rural areas, and needs more culture and arts as its locomotive rather than the knowledge economy.

The common theme among these settlements is the need for organized action, and local actors need to take part in this action. Another need is to develop a tailored strategy based on each city’s strengths, in this case, cultural heritage and art. For both cities (Ayvalik and Bodrum), organizing large-scale events is a step forward. The jointly produced development strategies are grouped into eight categories for each city (see

Table 10. Strategies for Ayvalik.

AYVALIK STRATEGIES
Physical Spaces, Equipment and Infrastructure	▪ Allocating working/production spaces for artists/designers ▪ Increasing exhibition and performance areas ▪ Making the city a center of attraction for artists and entrepreneurs by increasing the quality of life ▪ Use of historical heritage sites for exhibition and study purposes ▪ Park, trade, visiting points for visitors ▪ Fixing infrastructure problems
Digital Infrastructure	▪ Free wifi hotspots in public ▪ Development of digital services ▪ Citizen-centred website (for municipalities)
Entrepreneurship and Creative Infrastructure	▪ Development of R&D innovation and branding ▪ Creation of an entrepreneurial ecosystem ▪ Ensuring interdisciplinary cooperation ▪ Branding of designers with interdisciplinary collaboration, training in marketing
Education	▪ Increasing awareness incentive for the culture/arts industries at all educational levels ▪ Increasing cooperation with the university
Financing	▪ Creating public funds for art activities and organizing various events ▪ Ensuring that capital owners in the field become sponsors of cultural and artistic events
Promotion	▪ Mapping and promotion of cultural art spaces, workshops, galleries ▪ Cross-border cooperation creation of cultural networks ▪ Development and implementation of branding and marketing tools for the promotion of original products ▪ Use of appropriate digital Technologies for the promotion of cities
Social Structure	▪ Ensuring social reconciliation ▪ Transforming non-governmental organizations to address the general public by purging them of politics ▪ Adoption of the understanding of governance and participation by the local government
Policy Documents	▪ In addition to agriculture and tourism, addressing a local creativity based vision, emphasizing the culture&art industries

Source: author.

, Table 11 and Table 12).

Table 9. Summary of Findings of Ayvalık and Bodrum group meetings.

	Strategies	Road Map
Ayvalik	Organizational	- Best form of organization: Cooperativeization - Local organizations, local actors, local government
	Creative industries to be developed primarily	Design, Architecture, Cultural heritage, Museum, Library
	National and international actions	Organizing national and international events and organizations
	Getting rid of seasonality in the economy	- Uncovering the potential of culinary culture and gastronomy - Holding events and organizations that will attract the digital game industry
Bodrum	Organizational	- Non-hierarchical, specialized organization - Local organizations, local actors, local government - The necessity of capital
	Compliance with the era of Industry 4.0	Bringing knowledge-based creativity to the fore
	Production must be qualified and local and a corresponding system must be established	- Activities for the human resources it has: especially culture and art - Local actors acting together
	Sectoral added value should be created	- Bodrum should develop with its own identity (Example Halicarnassus) - Art, culture, sports and museology should be brought to the fore - Art and culture creating added value independent of tourism - Large-scale festivals should be brought to the fore. In this sense, there are many human resources in Bodrum, but the spatial infrastructure is weak.

Source: author.

Table 9. Summary of Findings of Ayvalık and Bodrum group meetings.

	Strategies	Road Map
Ayvalik	Organizational	- Best form of organization: Cooperativeization - Local organizations, local actors, local government
	Creative industries to be developed primarily	Design, Architecture, Cultural heritage, Museum, Library
	National and international actions	Organizing national and international events and organizations
	Getting rid of seasonality in the economy	- Uncovering the potential of culinary culture and gastronomy - Holding events and organizations that will attract the digital game industry
Bodrum	Organizational	- Non-hierarchical, specialized organization - Local organizations, local actors, local government - The necessity of capital
	Compliance with the era of Industry 4.0	Bringing knowledge-based creativity to the fore
	Production must be qualified and local and a corresponding system must be established	- Activities for the human resources it has: especially culture and art - Local actors acting together
	Sectoral added value should be created	- Bodrum should develop with its own identity (Example Halicarnassus) - Art, culture, sports and museology should be brought to the fore - Art and culture creating added value independent of tourism - Large-scale festivals should be brought to the fore. In this sense, there are many human resources in Bodrum, but the spatial infrastructure is weak.

Source: author.

In Ayvalik, interdisciplinary collaboration, agreement, and cooperation between the public, NGOs, associations, and authorities are essential. Branding, marketing, and R&D to promote the values and unique products of the city constitute another vital tool.

Artists, designers, and entrepreneurs comprise the forefront of the city’s creative potential. Therefore, attracting investment and organizing activities that will ramp up the creative transformation of the city are important. In other words, taking steps for developing culture and arts, extending this to all areas from education to finance, and the effective participation of all segments and organizations constitute the core strategies in Ayvalik (Table 10).

Bodrum’s strong suit is the city’s international recognition, which repeatedly resurfaces in their strategy documents. Also, investments in arts and culture and encouraging collaboration between actors are on the agenda. Creating physical spaces, improving the city’s infrastructure, and enhancing the quality of life are critical for developing arts and culture and attracting the related labor force (see Table 11).

For Urla, highlighting the city’s natural and cultural values is critical. The city has several unique products with a high branding potential. Existing strategies aim to capture this potential; however, to accomplish this, establishing an entrepreneurship ecosystem and supporting initiatives from agriculture to culture is imperative. Unlike other cities, university cooperation is at the forefront of Urla’s strategies (see Table 12).

Table 11. Strategies for Bodrum.

BODRUM STRATEGIES
Physical Spaces, Equipment and Infrastructure	▪ Creating public spaces as meeting points for artist interaction ▪ Ensuring that creative workforce is attracted and permanent in the region by improving the quality of life and improving infrastructure ▪ Creating innovative performance area ▪ Improving transportation facilities, improving public transportation ▪ Creation of outdoor exhibition areas
Digital Infrastructure	▪ Improving internet infrastructure and connection strength ▪ Association, cooperative, foundation, etc. gathering formations on a common online platform ▪ Making cultural heritage sites available for interactive sharing on digital maps
Entrepreneurship and Creative Infrastructure	▪ Trying to ensure cultural exchanges with different countries ▪ Regular art activity in different disciplines, e.g. school concerts/exhibitions, poetry/writer groups ▪ Establishing art juries by art councils affiliated with local governments in order to increase the quality of artistic activities ▪ Networking/collaboration between arts groups and artists ▪ Culture-art associations etc. Entities promote local heritage and culture by creating public/private partnerships ▪ Creating a basis for interdisciplinary studies ▪ Increasing training and activities aimed at creating the entrepreneurship ecosystem
Education	▪ Ensuring sector cooperation between the university/vocational in the region and carrying out studies on products that will provide economic input ▪ Artistic education institutions can appeal to all segments of society ▪ Raising public awareness about the cultural and historical richness of the region ▪ Designing special education and cultural programs for marginalized groups
Financing	▪ Encouraging the transfer of funds from major investors in the region to artistic activities through local government regulations ▪ Establishment of experience transfer platforms in order to develop the autonomous funding mechanism of artistic activities in the region
Promotion	▪ Mapping and promotion of cultural art Promoting sustainable culture and heritage projects ▪ Promoting the value of local cultural products and practices ▪ Mapping and presenting information about art activities, displayed areas, workshops, performance areas, museums on online platforms ▪ Large tourism enterprises in the region include local artistic elements
Social Structure	▪ Development of artistic experiments and innovative programs for young people living in the region ▪ Improving existing cultural programs and adapting them to different groups of the population ▪ Ensuring immigrants participation in local cultural and artistic events ▪ Creating artistic programs that bring together multicultural groups with different ethnic, religious and linguistic backgrounds ▪ Increasing participation in artistic activities and creative workforce by demographic categories
Policy Documents	▪ The local government should strategically emphasize the development of creative activities by digitally demonstrating the existence of artistic activities and creative industries

Source: author.

Table 11. Strategies for Bodrum.

BODRUM STRATEGIES
Physical Spaces, Equipment and Infrastructure	▪ Creating public spaces as meeting points for artist interaction ▪ Ensuring that creative workforce is attracted and permanent in the region by improving the quality of life and improving infrastructure ▪ Creating innovative performance area ▪ Improving transportation facilities, improving public transportation ▪ Creation of outdoor exhibition areas
Digital Infrastructure	▪ Improving internet infrastructure and connection strength ▪ Association, cooperative, foundation, etc. gathering formations on a common online platform ▪ Making cultural heritage sites available for interactive sharing on digital maps
Entrepreneurship and Creative Infrastructure	▪ Trying to ensure cultural exchanges with different countries ▪ Regular art activity in different disciplines, e.g. school concerts/exhibitions, poetry/writer groups ▪ Establishing art juries by art councils affiliated with local governments in order to increase the quality of artistic activities ▪ Networking/collaboration between arts groups and artists ▪ Culture-art associations etc. Entities promote local heritage and culture by creating public/private partnerships ▪ Creating a basis for interdisciplinary studies ▪ Increasing training and activities aimed at creating the entrepreneurship ecosystem
Education	▪ Ensuring sector cooperation between the university/vocational in the region and carrying out studies on products that will provide economic input ▪ Artistic education institutions can appeal to all segments of society ▪ Raising public awareness about the cultural and historical richness of the region ▪ Designing special education and cultural programs for marginalized groups
Financing	▪ Encouraging the transfer of funds from major investors in the region to artistic activities through local government regulations ▪ Establishment of experience transfer platforms in order to develop the autonomous funding mechanism of artistic activities in the region
Promotion	▪ Mapping and promotion of cultural art Promoting sustainable culture and heritage projects ▪ Promoting the value of local cultural products and practices ▪ Mapping and presenting information about art activities, displayed areas, workshops, performance areas, museums on online platforms ▪ Large tourism enterprises in the region include local artistic elements
Social Structure	▪ Development of artistic experiments and innovative programs for young people living in the region ▪ Improving existing cultural programs and adapting them to different groups of the population ▪ Ensuring immigrants participation in local cultural and artistic events ▪ Creating artistic programs that bring together multicultural groups with different ethnic, religious and linguistic backgrounds ▪ Increasing participation in artistic activities and creative workforce by demographic categories
Policy Documents	▪ The local government should strategically emphasize the development of creative activities by digitally demonstrating the existence of artistic activities and creative industries

Source: author.

Table 12. Strategies for Urla.

URLA STRATEGIES
Physical Spaces, Equipment and Infrastructure	▪ Developing new structures that will create an ecosystem based on local asset-oriented for example; ‘Urla Research Center’ ▪ Using the wine businesses of 5 local entrepreneurships in 4 villages, which also from the vineyard route, for the development of potential viticulture and winemaking ▪ Establishment of centers to carry out R&D studies on organic wine factories and grape processing facilities within the university campus area ▪ Carrying out similar studies for the branding of olives and olive oil, ensuring university cooperation ▪ Restoring historical buildings and transforming them into tourism, culture and centers ▪ Transforming Karantina Island into ‘Art and Design Island’ and carrying out national/international Works ▪ Conducting a detailed documentation study on Urla focusing on creative industries and creating an up-to-date bulletin on gastronomy, art, design, festivities and festivals and creating an Urla archive with the outputs obtained ▪ Increasing design resources and creating a co-working space in Design Library located in the center of Urla ▪ Turning it into a place of deep experience sharing with historical-cultural-thematic routes ▪ An ‘Art and Aesthetics Board’ is established by the municipality to carry out studies on the cultural, artistic and historical values of the city ▪ Developing initiatives such as the olive museum, establishing organized agriculture zones that support local production specific to the region and studying and supporting issues such as processing, packaging, drying, marketing and training
Digital Infrastructure	▪ Establishing an inventory-based information system by preparing an asset management plan that highlights historical and cultural values ▪ Preparation of special database for workplace inspection ▪ Establishing a system that regularly monitors the activities of NGOs
Entrepreneurship and Creative Infrastructure	▪ Creating a local entrepreneurship ecosystem based on natural/cultural assets ▪ Expanding the university-centered R&D and innovation-oriented structure and integrating it with social entrepreneurship in Urla ▪ Integrating the Innovation Center with the region and increasing science camps such as HacknBreak, holding the Entrepreneurship summit in Urla ▪ Encouraging gastro design initiatives that create brand value such as Made in Urla and representing them in organic markets, establishing a thematic university centered on culinary arts
Education	▪ Ensuring sector cooperation between the university/vocational in the region and carrying out studies on products that will provide economic input ▪ Artistic education institutions can appeal to all segments of society ▪ Raising public awareness about the cultural and historical richness of the region ▪ Designing special education and cultural programs for marginalized groups
Financing	▪ Development and research of grant resources ▪ Creating sponsorship models ▪ Development of local funding mechanisms
Promotion	▪ Revitalizing and making effective local administrative structures with traditions such as the Peninsula Advisory Board and Union of Peninsula Municipalities ▪ Establishing higher organizations such as Producer Unions and Tourism Council that can be gathered under the umbrella of Peninsula and the brand of Peninsula ▪ Ensuring the connectivity of values existing at the local level to regional and global networks ▪ Introducing the region as Urla Wine Valley ▪ Promoting organized events, festivals and organizations on national and international platforms ▪ Programming days and festivals where products and values for local resources specific to the region will be promoted ▪ Increasing the number of geographically indicated products and the share of brand registrations in Turkey by encouraging branding
Social Structure	▪ Development of contemporary village chambers which are living centers where information is shared, common decisions are made, common activities are held and training is provided
Policy Documents	▪ Ensuring that the strategy development unit of the municipality cooperates with the university and local people regarding the projects to be carried out in Urla and the programs that can receive grant support

Source: author.

Table 12. Strategies for Urla.

URLA STRATEGIES
Physical Spaces, Equipment and Infrastructure	▪ Developing new structures that will create an ecosystem based on local asset-oriented for example; ‘Urla Research Center’ ▪ Using the wine businesses of 5 local entrepreneurships in 4 villages, which also from the vineyard route, for the development of potential viticulture and winemaking ▪ Establishment of centers to carry out R&D studies on organic wine factories and grape processing facilities within the university campus area ▪ Carrying out similar studies for the branding of olives and olive oil, ensuring university cooperation ▪ Restoring historical buildings and transforming them into tourism, culture and centers ▪ Transforming Karantina Island into ‘Art and Design Island’ and carrying out national/international Works ▪ Conducting a detailed documentation study on Urla focusing on creative industries and creating an up-to-date bulletin on gastronomy, art, design, festivities and festivals and creating an Urla archive with the outputs obtained ▪ Increasing design resources and creating a co-working space in Design Library located in the center of Urla ▪ Turning it into a place of deep experience sharing with historical-cultural-thematic routes ▪ An ‘Art and Aesthetics Board’ is established by the municipality to carry out studies on the cultural, artistic and historical values of the city ▪ Developing initiatives such as the olive museum, establishing organized agriculture zones that support local production specific to the region and studying and supporting issues such as processing, packaging, drying, marketing and training
Digital Infrastructure	▪ Establishing an inventory-based information system by preparing an asset management plan that highlights historical and cultural values ▪ Preparation of special database for workplace inspection ▪ Establishing a system that regularly monitors the activities of NGOs
Entrepreneurship and Creative Infrastructure	▪ Creating a local entrepreneurship ecosystem based on natural/cultural assets ▪ Expanding the university-centered R&D and innovation-oriented structure and integrating it with social entrepreneurship in Urla ▪ Integrating the Innovation Center with the region and increasing science camps such as HacknBreak, holding the Entrepreneurship summit in Urla ▪ Encouraging gastro design initiatives that create brand value such as Made in Urla and representing them in organic markets, establishing a thematic university centered on culinary arts
Education	▪ Ensuring sector cooperation between the university/vocational in the region and carrying out studies on products that will provide economic input ▪ Artistic education institutions can appeal to all segments of society ▪ Raising public awareness about the cultural and historical richness of the region ▪ Designing special education and cultural programs for marginalized groups
Financing	▪ Development and research of grant resources ▪ Creating sponsorship models ▪ Development of local funding mechanisms
Promotion	▪ Revitalizing and making effective local administrative structures with traditions such as the Peninsula Advisory Board and Union of Peninsula Municipalities ▪ Establishing higher organizations such as Producer Unions and Tourism Council that can be gathered under the umbrella of Peninsula and the brand of Peninsula ▪ Ensuring the connectivity of values existing at the local level to regional and global networks ▪ Introducing the region as Urla Wine Valley ▪ Promoting organized events, festivals and organizations on national and international platforms ▪ Programming days and festivals where products and values for local resources specific to the region will be promoted ▪ Increasing the number of geographically indicated products and the share of brand registrations in Turkey by encouraging branding
Social Structure	▪ Development of contemporary village chambers which are living centers where information is shared, common decisions are made, common activities are held and training is provided
Policy Documents	▪ Ensuring that the strategy development unit of the municipality cooperates with the university and local people regarding the projects to be carried out in Urla and the programs that can receive grant support

Source: author.

3.6. Evaluation

The above section presents the findings of initial research, online interviews, and the outcomes of the group meetings. This section aims to give a brief overview of the results.

Local governments have focused on festivals and tourism as creative economic strategies. Professional associations emphasize that city development stagnates when left to their own devices, despite their potential. While the professional chambers in Ayvalik cannot provide solid data as to why the city is not developing, the sectors they identify as having potential are not creativity-based.

On the other hand, the chambers in Bodrum and Urla identified the reasons for the lack of development and pointed to many potential creativity-based sectors. Local organizations appear to have more awareness than local governments and chambers. On the other hand, city councils do not have any interest in or planned action for a creative economy or urban development. The migration of secondary homeowners and senior citizens to the cities distances them from a production-based economy; however, skilled young labor forces and the high level of education and human capital they bring strengthen their social structures. Therefore, the main point of discussion in these cities is to ensure the sustainability of the economy and to attract or retain the young/educated population. Considering the characteristics and potential of each city, the development of creative industries will be strategically important in overcoming these problems. From this perspective, the primary issue will be identifying the dynamics affecting creativity development in small-sized cities.

Here is a summary of the findings that point to the reasons behind the current situation in these cities:

• Cities are unable to utilize their potential.
• Despite their potential for creative economic development, creative industries are not yet part of the economies of these cities.
• The lack of knowledge and implementation tools to turn potential industries into creative industries hinders the development of the cities.
• Tourism and agriculture, being the dominant sectors, negatively impact the development of the other sectors.
• The lack of a skilled labor force is another obstacle that slows down development. Senior citizens, even though they have some degree of human capital, do not contribute to the cities’ economies.
• There are many activities under the umbrella of culture and arts. However, the cities experience difficulties monetizing them.
• The lack of awareness of local institutions, organizations, and society impedes development.
• There are no policy reports, decisions, funding, or projects related to a creative economy.
• Central and local governments lack awareness, and their plan recommendations are still about developing the sectors that made these cities’ economies vulnerable in the first place.
• Local institutions and organizations also lack awareness and willingness to act. Local governments do not have any active strategies, contributions, or future goals to support the creative economy in cities; city councils have no willingness to be involved.
• The cities have different characteristics, but actors’ attitudes towards creativity are similar. There is no tendency to act together and cooperate with local job creation and creativity; there is insufficient social consensus and collaboration.
• Despite the existence of a small but creative population that can pioneer development, policy makers and capital owners cannot transform this wealth into collective action.
• The actors know the economic challenges but do not know how to access funding, necessary instruments, or set the mechanisms in motion.

Below is a summary of findings indicating future development possibilities for these cities:

• The creative economy potential consists mainly of culture-oriented industries.
• Ayvalik’s development axis is on agriculture–tourism–gastronomy. It is on the UNESCO tentative heritage list due to its industrial heritage. Its creativity-based development is shaped by its craft, gastronomy, and cultural heritage.
• As a tourism destination, Bodrum cannot generate added value from creativity-based sectors since its economic development is based solely on tourism. In terms of creative industries, Bodrum stands out with its art, design, and performing arts. It has a robust entrepreneurial ecosystem with a strong tendency to develop software, advertising, and architecture sectors. The contribution of institutionalized international festivals focused on art is recognized as touristic rather than a component of the cultural economy. It is evident that a cultural economy that is centered around the arts can be established.
• With Urla’s location in the Izmir Metropolitan Area and the university’s presence, the creative economy is supported by a qualified, young population. In terms of creative industries, craft and gastronomy, software, and high-tech sectors stand out.

Another issue is uncovering the opportunities for creativity-based urban development. In small-scale cities, artistic and cultural values and institutionalized activities are essential for creativity-based development. The cultural heritage and unique values of Ayvalik, Bodrum, and Urla can be transformed into added value and are highly suitable for the creative economy. However, creativity-based urban development needs more than the characteristics and strengths of assets. It requires the harmony and presence of different actors that strengthen the creative ecosystem. Finally, focusing on more than a single realm would be required if multi-faceted development is required. Even if cities are economically strong, they develop through social, institutional, cultural, educational, spatial, legal, and financial policies and strategies. Therefore, a holistic framework for creativity-based urban development is needed.

4. Conclusions

Today’s dominant economic system places knowledge and the individual abilities of the actors at its center and requires innovation and creativity. Creative industries’ entrepreneurial potential integrates high levels of human capital into the economy, whereas diversity adds to the quality of life in society, resulting in multidimensional benefits. Medium and small cities usually lack the infrastructure that supports advanced and differentiated production, which makes them economically disadvantaged in the long run. Therefore, they need to mobilize other resources to ensure local economic development and survival in the global system. This is why a creative economy serves as an opportunity for small cities.

Recent studies focusing on small- and medium-sized cities have emphasized that creative-economy-based urban development is an alternative for the development of these cities; in turn, these cities can pose a great opportunity for the development of a creative economy at the national level. For Turkey, where inequalities among cities on the national level persist, encouraging small cities to become pioneers of a creative economy is gaining even more importance. While Turkey, with its historical and cultural diversity, can easily realize this potential in a development schema through urban policies and practices, institutional and political traditionalism, idle institutional structures, lack of awareness and institutional capacity, and outdated vision statements inhibit this process.

This paper focuses on three small-scale coastal cities (Avyalik, Bodrum, and Urla) in Turkey and evaluates the local dynamics to understand what fundamental features are essential for a creative-industry-based development. These cities possess significant potential for the development of cultural industries; however, in addition to the lack of awareness, interestingly, the suitable environment does not have a direct impact on triggering this development.

There is also a series of problems that hinder development. While seasonal population changes and tourism-oriented investments seem to be a major problem, the type of population these cities attract does not contribute to their long-term development. Even though young, skilled workers started to move these cities after the pandemic, the population mostly consists of senior citizens and secondary homeowners, mostly retirees, who have very little contribution to economic production and tax urban infrastructures by increasing the overall population. More importantly, current policies continue to support these activities.

Tourism is not the enemy; however, it should be planned in relation to other industries, especially agriculture, to ensure sustainable economic development. The lack of awareness of decision makers and the lack of institutional capacity prevent these strategies from succeeding. Furthermore, tourism and other service sectors have increasingly become the dominant economic sectors, supported by local and central authorities with new policies, replacing all other local economic activity. In addition, the lack of control and monitoring mechanisms will continue feeding into this situation. In summary, unless the positive impact of a creative economy on urban infrastructure and economic diversity is recognized, sustainable economic development goals will likely fail in the long run.

This study found that the actors and policy makers of the three cities have not yet recognized the growing importance of creative industries for sustainable economic development. The creative economy in Ayvalik, Bodrum, and Urla has primarily revolved around cultural industries for the past decade. However, for this strategy to be successful and contribute to the sustainable development of these cities, institutions, social structures, and civil actors should be willing to generate the know-how to realize this development strategy. There is a need for a more structured organizational approach and cooperation among actors. In particular, city councils, one of the most fundamental actors in the development of creative industries, have become ineffective structures that function almost exclusively within the framework of the political mechanisms of local governments.

In these three cities, institutional involvement is limited to organizing events and festivals and the creative industries are merely regarded as culture and arts. While events, especially festivals, are designed to promote the unique characteristics of these cities, they are considered tourism events.

Other advantages of small- and medium-sized cities are the informal communication channels between individuals, trust-based relationships, easy information exchange, collaboration, and production [23]. However, the lack of structures, awareness, and institutionalization; poor participation; and limited access to financial resources reduce the positive impact of these characteristics on the creative economy. Additionally, generating and sharing data continues to be one of the major problems in Turkey. Many studies cannot delve further due to data limitations, and data-driven policy-making processes suffer.

In answer to the research question, the existence of traditional sectors in cities, even if they are weak; the added value they produce; the population structure of the city; the culture and arts infrastructure; the institutional capacity; the vision of the main actors; and their open-mindedness make a difference to urban development, even if they are not aware of it. Undoubtedly, one of the most fundamental variables is the capacity of key actors. The capacities of key actors should also be considered as a reflection of the level of other urban variables.

Even though studying creative-economy-based development through the experience of these three cities is not sufficient to explain what hinders development, this small-scale research aims to shed light on the inner workings of small cities and thus contribute to the literature by providing a starting point.

Most of the existing literature focuses on labor statistics on the regional and national scales, overlooking the importance of cities’ unique characteristics in sustainable economic development. This study diverges from the existing literature by focusing on both the inner workings of small cities and the urban policies that aim to support creative economic development. The emerging literature on urban development suggests that sustainability should be the main focus of planning. Therefore, detailed studies are needed to understand how to encourage and maintain economic diversity in cities.