摘要：The inter-urban competition seems to be of paramount importance for city-development today. The extensive reliance of competitiveness-oriented urban governance agendas on the knowledge-based, ＂new＂ economy, introduced the notion of ＂creativity＂ into discussion on the future of urban development. Though still on the margins of serious urban theory, the discourse on ＂creative cities＂ that emerged in the early 2000s, has already had massive influence on the ways in which cities are managed and transformed in Europe. After examination of how the competitiveness-oriented strategies based on creativity and related to the qualities of place increase cultural and social sustainability of urban transformation and development, this paper briefly rethinks the current urban development policy of the city of Sarajevo in relation to the notion of ＂place＂, by leaning on the contemporary European urban development paradigm. The conclusion points out that the sustainable increase of urban competitiveness in Sarajevo should be pursued by the development projects of urban transformation promoting creative knowledge sector, based on the inclusive cultural urban narratives related to places, thus assuring simultaneous growth of creative knowledge industries and preservation of diverse social geography.