Creative capital second only to London

City council chiefs believe Scotland's capital is now second only to London as a hub for the creative industries, such as the arts, advertising, computer gaming, software development, media and architecture.

New research shows that Edinburgh has some 28,000 people employed in the creative sectors – almost half of the total number across Scotland.

Now a campaign highlighting the quality of life, world-leading events and the strength of the city's economy is to be developed in an effort to win investment and lure talent from abroad.

Leading players in the festivals and arts organisations, advertising and design agencies, architecture firms and publishers will be asked to support the "Creative Edinburgh" campaign, which is expected to be launched at Tartan Week in New York next month.

Edinburgh is also expected to join forces with Glasgow, which has a booming digital media quarter on the Clyde.

Consultants found that Edinburgh's quality of life and relatively low living costs make it competitive with rivals such as Barcelona, Milan, Copenhagen and Vienna.

Key strengths highlighted include house prices averaging about 44 per cent less than London, the second-highest standard of living in the UK – after St Albans in Hertfordshire – and relatively low staffing costs compared with European competitors.

The research, from FDi Intelligence, states: "As a city renowned for the performing arts, it is unsurprising that Edinburgh should excel in the creative industries.

"Edinburgh offers one of the best-educated populations in Europe, an outstanding research and development record and a living environment and level of wealth conducive to recreation and the arts."

The study found Edinburgh had more than 10,000 people employed in arts, education and recreation – the third-highest in the UK, and ahead of Glasgow, Birmingham, Manchester and Liverpool. In terms of research and development, the capital was also ahead of Hamburg, Athens, Geneva, Copenhagen, Manchester and Dublin.

However, a new report for the council said the entire creative industries sector in the capital lacked a major profile and was in need of a support infrastructure for businesses. The city council and its new promotional body, the Destination Edinburgh Marketing Alliance (Dema), are to set up a task force to promote the success of computer game creators Rock Star North, architects RMJM, publishers Canongate and the Leith Agency, the advertising firm.

Kenneth Wardrop, chief executive of Dema, said: "Edinburgh is well known as a creative centre during Festival time, but it's vital that the amazing talent based here all year round is recognised.

"They represent a dynamic contribution to the local economy and are an essential component of the city's international reputation," Mr Wardrope went on. "The unique mix found here helps to distinguish us from others, and the global reach of businesses such as Rockstar North and RMJM architects is incredibly important."

Key figures that make Edinburgh one of the most creative cities

28,000 people employed within creative industries sectors, at least 7 per cent of the total workforce in the city.

Employment in arts, entertainment and recreation: 10,000.

Employment in research and development: 7,000.

Some 150 companies in research and development and 144 companies in advertising and sales media.

The UK's fifth largest contributor of patents.

The UK's third largest recipient of investment in the creative industries sector.

Home to the world's largest arts festival: the Edinburgh Festival Fringe, left.

250 different fairs and festivals, attended by at least three million people every year.

An average commute-to-work time of 22 minutes.

Direct flights to 76 international destinations.

Second highest standard of living in the UK after St Albans.

House prices 44 per cent cheaper than London, with the average price about 200,000.