Brighton and Hove have always been magnets for the more creative elements of society.

From the exotic spires of the Royal Pavilion to the music of DJ Fatboy Slim, the town has a reputation for attracting people with unconventional ideas.

But while the towns have a reputation for being at the cutting edge of new ideas and culture but many creative companies in film, theatre and the arts are struggling to survive against a lack of support and funding.

Today Culture Minister Chris Smith will join local luminaries at Brighton University to debate a new report looking at ways to support the creative industries in Brighton and Hove.

The new research has for the first time looked at the strengths and weaknesses of the towns' creative industries and what action is needed to help them flourish.

The draft report, commissioned by Brighton and Hove Council, the Place To Be and South East Arts, discovered slightly less than 1,600, or almost 20 per cent, of the 8,600 businesses in the towns are part of the booming creative economy.

They range from advertising to architecture, design, fashion, film and digital media.

The report said: "For 200 years or more Brighton and Hove have attracted people who want to enjoy the energy, style and internationalism of a big city on a small scale: A place for unconventional ideas, to try new things before they are widely accepted, a place for experiment and refreshment."

Despite the fact creative industries play a major part in the local economy, the report found not enough was being done to support them.

Many individual musicians, writers, filmmakers and other pioneers with a good idea but no funding and business knowledge simply give up or move to London because they cannot get the business, legal and artistic advice they need.

DJ Nicky Freeman, who works under the stage name DJ Free in several venues around Brighton, said she was inspired by the town to take up a new musical career.

At first she felt slightly overwhelmed by how many creative people had moved here hoping to 'make it'.

Miss Freeman, who lives in the Preston Circus area of Brighton, said: "It is a very open-minded and inspiring place in terms of the people and the way of life. As a woman and a DJ, it was the right place to get into the business.

"But the fact is the funding seems to go to other places and unless you are an established success a lot of people fall by the wayside. Big business needs to realise the potential of creativity in terms of sponsorship and give London a run for its money. At the moment, lots of people in the arts and music end up going to London."

The creative industries report, by David Powell and Pru Robey, found there was a thriving creative community, brimming with new ideas, in the towns.

The most successful sectors are digital media, the club and commercial music scene and in the promotion of contemporary dance, street arts and other unusual events.

Other sectors, such as the visual arts, performance, theatre and the production of new work seem to be moving forward more slowly or with difficulty.

According to the report, the creative industries are hampered by a feeling of isolation and a lack of tailored business and legal support.

It said: "Creative businesses often find public, commercial and professional agencies in Brighton and Hove - including the council - difficult to access for the right kind of advice, for financial and legal expertise and for the right workspace where and when they want it.

"Brighton and Hove have a lot of new companies and a lot of young creative entrepreneurs and start-ups. They are often working in areas where there are few precedents and where the global markets, investment patterns and the technologies themselves are moving at great speed.

"Much of the creative community in Brighton and Hove is individualised, fragmented and competitive."

The report recommends an action programme to turn the town into the Place To Be Creative during the next ten years.

It sets several ambitious targets, such as doubling the amount of investment in research and development in the next five years, doubling the number of creative companies employing more than 200 people in three years and reducing creative business start-up failure by 50 per cent in three years.

A Creative Industries Skills Forum, comprising leaders from the community, business and council, will be set up in the next few months to set standards and monitor achievements.

Employment and education agencies will be encouraged to customise skills and support services for the creative industries and a network of bankers and investors will be set up to liaise between the creative and financial communities.

A Brighton-based brand will be developed to market the town both nationally and internationally.

David Powell, who co-wrote the report, said: "The big picture is something Brighton and Hove should be proud of.

"Lots of companies want to move here for all sorts of reasons and there is a flourishing pool of talent. The challenge is how to sustain that growth."