Fundamental to an understanding of the creative economy – what it comprises and how it functions in the economies of both developed and developing countries – are the concepts of “cultural industries” and “creative industries”. This article provides an overview of the development of the concepts of “creativity” throughout this decade leading to what became known as the “creative economy”. The author’s intention is not to reach a fi nal consensus about concepts, but to understand its evolution. It also considers the emergence of the associated concepts of “creative class”, “creative cities”, “creative clusters”, as well as the most recent innovative notions relating to the “experience economy” “creative commons” and “creative ecology”. The major drivers of the growth of the creative economy and its multiple dimensions are examined in the light of recent developments including the world economic crisis. This article also provides evidence on the economic contribution of the creative industries to the economies of various advanced countries.