The article analyzes the problem of economy and culture interaction, as well as it addresses the issues of its consideration both in the economic policies and programs of urban and regional development. At the same time, the authors consider the development of the so-called creative industries, as well as the contribution of the cultural sector to the economy, as a whole. The authors emphasize that since the cities have become the global development centers, they keep on constantly participating in the competitive struggle for talents, investment and influence. In today's world, which exists in the environment of information economy and growth of the significance of the emotional and symbolic components of the product, the role of the cultural industries in enhancing a particular city's attractiveness is overwhelming. The article presents a methodology that allows evaluating the main characteristics of the brand of a city (strength, merit and power) and that demonstrates the guidelines for State policies aimed at the city development. The approaches to the assessment of the strength and dignity of a city brand help to define investment priorities in the implementation of social and economic policy in the sphere of culture and tourism. The State gets an additional tool for the analysis and comparison of regions in terms of their development prospects of the world cultural brands and bringing sustainable tourist flows. This technique is able to provide the very region with information about the strengths and weaknesses of its cultural brand. The regions may determine the direction of development of the brand and to select the most promising programs aimed at the development of brand culture site.
Keywords: Keywords: socio-cultural sphere, Baumol's cost disease, creative economy, city image, city brand, brand strength, brand power, brand merit
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