The phenomenon of creative industries clustering has been widely studied but less attention has been paid to the reasons for creative entrepreneurs to cluster. Knowing what factors influence creative entrepreneur’s decision to locate close to other creative and cultural industries may provide important insights into the successful development of creative clusters. Therefore the purpose of this study is to clarify why creative entrepreneurs choose to locate close to other creative industries and what factors influence this co-location decision. The study has been conducted in the Uzupis district in Vilnius, Lithuania. Uzupis district is one of the most noticeable examples of clustering of creative industries in Vilnius. The area now contains 250 creative industries ranging from individual artists, producers, art investigators, managers to museums and galleries. Preliminary results suggest that there are various factors that affect clustering of creative and cultural firms in Uzupis. Most firms emphasize the importance of the unique environment, price and availability of space/rent, proximity to other creative actors that generates creative atmosphere. Agglomeration economies, urbanization economies as well as related variety, however, have only a slight effect on clustering of creative and cultural firms in Uzupis district.
