In this paper we present the results of detailed case-study work on two important music production centres: Stockholm (Sweden) and Kingston (Jamaica). It is shown that both are dynamic innovation and production centres for populate music. In both cases local characteristics of the organisational and firm structure in the industry are claimed to be crucial for understanding innovation processes and the competitiveness of the resulting products. However, it is shown that considerable differences exist between the two centres in terms of the profits and returns (both monetary and otherwise) on global competitiveness and success made both by local actors and by the local production system. It is suggested that two crucial areas explain these unequal returns to commercially successful creativity: interfirm and intrafirm links between the local and global; and the effectiveness of intellectual property regimes. It is suggested that work on cultural-products industries must attempt to understand not only the processes from which commercial innovation arises and in which it is embedded, but also the processes and mechanisms by which appropriate levels of returns on creativity can be secured by the local production centre.
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