The paper deals with the issue of urban development i.e. economic growth of cities from the perspective of cultural development and creativity market. In relation to that, the article considers different approaches and definitions of creativity, models and concepts of creative cities, especially from the position of town and spatial planning. The American and European continental development concepts of urban creativity are opposed. The main part of the article refers to the analysis of legislation and sub-legal acts and regulations that disable adoption, affirmation and application of the concepts of creative cities in Serbia, especially in practice. The author observes this problem in the field of public policies - as a continuity of disputes within public policies of a country in transition - a collision relation in the sphere of public and private interests and proposes a partnership of the two sectors as a possible solution to this problem.
