Managing creative industries in the context of knowledge-based urban development

The advent of the knowledge economy has put the focus on innovation, creativity and networks as drivers of competitiveness and economic growth. This has shifted development perspectives from tangibles-based competitiveness to knowledge-driven competitiveness transforming the way the economy is organised and putting emphasis on the emergence of a new type of capital. Creative industries represent a form of capital that provides economic benefits and the links between creative capital, quality of life and competitiveness has made the creative industries a serious economic factor that needs to be considered in regard to cities and regions viability. The two issues, creative industries and knowledge-based urban development (KBUD) remain not only challenging fields of research but also the key elements for discussions on the competitiveness of cities and regions. The purpose of this paper is to explore the `creative industry' concept to relate it to the ongoing process of creating knowledge-based urban developments.