The present chapter reviews the recent studies of the ABC department surrounding the role of cultural heritage and creativity on local economic development. The research line covers the interpretation of culture as a territorial asset, its multifaceted dimensions, and impact on local development. An innovative definition of cultural capital was provided, jointly with empirical evidence on the relationship between cultural heritage and intangible cultural elements. The most interesting finding shows that culture, embedded within cultural heritage, plays a role in promoting prosperity only when tangible heritage is matched with intangible cultural assets. Among such intangible assets, creativity is particularly analyzed in terms of its link with the cultural heritage of places and their economic development. The assumption, both conceptually and empirically investigated, is that culture promotes creativity through emotional, esthetic, and inspirational mechanisms, driving individuals' ability to doubt, innovate, and think critically. In other words, creativity is an important mediator of the relationship between culture and socioeconomic development. Empirical evidence from Italian regions strongly supports this hypothesis. Future research directions are presented in the concluding section.