This paper provides a comprehensive literature review of creative industries, focusing on their development, challenges, and opportunities. The analysis examines existing research on the role of creative industries in economic growth, cultural development, and social innovation. It highlights the unique characteristics of the Serbian creative sector, including its historical background, current trends, and the impact of digital transformation. Furthermore, the review identifies key stakeholders, policy frameworks, and the potential for international collaboration to enhance the competitiveness of Serbian creative industries. By synthesizing existing literature, this paper aims to contribute to a deeper understanding of the creative economy in Serbia and to inform future research and policy-making.