Is Innovation a Driver of Sustainability? An Analysis from a Spanish Region

Measuring the Sustainability of the Orange Economy

1. Background. The Orange economy includes creative and cultural activities; and it has aroused great interest, both for research on growth and for public agencies and institutions, which have highlighted its capacity as an economic engine and a generator of sustainable growth. Despite this widely disseminated argument, empirical evidence is scarce. 2. Methods. This paper aims to resolve that, based on an analysis of Orange economy companies in two Spanish regions—the Valencian and Galician Autonomous Communities—for the period between 2000 and 2019. Based on the SABI® database, which contains data from the annual accounts that companies must submit to Mercantile Registry, company’s data have been grouped into three large subgroups and within activity branches. 3. Results. The Orange economy revenues and earnings have contributed at a higher growth rate than of the economy as a whole. It has achieved higher profitability ratios on a lasting basis over time. Although, there are differences between the various activities included in this sector 4. Conclusions. The Orange economy can be considered as an engine and a generator of sustained growth over time. Furthermore, results obtained show that the Orange economy is a sector that is resilient against crisis.