“The most successful economies and societies in the twenty-first century will be creative ones. Creativity will make the difference – to businesses seeking a competitive edge, to societies looking for new ways to tackle issues and improve the quality of life.” is written in the foreword of United Kingdom’s Creative Industries Mapping Document 2001. Indeed research shows that cultural and creative sector is a well performing by increasing its share of economic activity and indirectly contributing to growth in others sectors and local development in general. According to three T’s economic growth theory by R. Florida, main drivers of development are technologies, tolerance and the creative class and talent – people that are well educated and deal with creative or conceptual tasks in their professional life. Taking this into account, the aim of this article is to verify hypothesis that cities in Latvia with higher share of creative class and talent perform better than the others. It will be done by analyzing the correlations between the proportion of creative class and talent with the trends of socioeconomic development in 10 major Latvian cities. The research only partly approves the hypothesis that cities with higher share of creative class and talent develop at a faster rate. Analysis of trends of socioeconomic development and creativity indicators in 10 major Latvian cities confirms that cities with higher share of creative class (scientists, engineers, artists, musicians, architects, managers etc. as a proportion of working age population) develop more rapidly and attracts more residents. However there is no significant correlation between the growth rates and the share of human capital (working age inhabitants with tertiary education), scientific talent (working age inhabitants employed in life, physical and social science occupations) and bohemians (working age inhabitants employed in arts, design, entertainment and sports occupations). The research shows that more talented cities, especially regarding the share of creative class and human capital, have higher overall development level and lower unemployment. Also there is an evidence of direct link between the share of human capital and creative class and the level of personal income.