Cultural and creative industries play a significant role in the economies of many countries around the world and these industries encompass a range of sectors such as art, design, media, entertainment and architecture. The paper analyzes the overall economic effect of cultural and creative industries with a special focus on their significance in the Republic of Croatia. Cultural and creative industries play a significant role in the economy of the Republic of Croatia, which is evident from the share in the GDP of the national economy and the number of employees. The role of cultural and creative industries can be seen through the positioning of Croatia through the GCI index, where it is ranked in the middle of the list, but also through the fact that Varaždin has become part of the network of creative cities. Regardless of achievements in the field of cultural and creative industries, further investments in cultural and creative industries are necessary. In order to improve the cultural and creative industry in the Republic of Croatia, the implementation of specific guidelines is necessary. Financial investments in encouraging innovation and accepting technological progress are key to strengthening the competitiveness of the cultural and creative industries in the Republic of Croatia at the global level. The development of the cultural and creative industry requires the establishment of modern cultural centers, platforms for the implementation of technology and workspaces for collaboration. The above-mentioned steps should be taken systematically through the activities of the Competitiveness Cluster of Creative and Cultural Industries, as well as through the attraction of financial resources from the Creative Europe program.