The paper sets out why creativity has become so important to urban and regional economics. It focuses on the role of creativity, creative industries, creative economy, creative class and creative cities for the modern urban economics. It points out the idea that the power of the future economy lays within the development of the creative city. The aim of a creative city is to make us to think of our city as a living work of art, where citizens can involve and engage themselves in the creation of a transformed place. Every city can be more creative that it currently is and the task for the city wanting to be creative is to identify, nurture, harness, promote, attract, and sustain talent and to mobilize ideas, resources and organizations.creative economy, creative cities, urban economics, creative class, sustainable development.