Cultural and creative sectors (CCS) have become well established in both an economic and policy context as important assets in strengthening Europe’s economic structure and maintaining its competitiveness in the global economy. This study maps the different value chains for visual arts, performing arts, cultural heritage, artistic crafts, book publishing, music, film, TV and broadcasting as well as multimedia. The study also examines how the competitive position of CCS is affected by digitisation. From creation to consumption, all steps in the value chains have been influenced by new digital solutions. They have brought about new opportunities for innovative practices and new ways of interaction with audiences, but also challenges such as piracy and an increased pressure on existing models of remuneration and value creation. The study discusses aspects related to competitive dynamics, market imperfections, rights management, cultural diversity and other issues of importance to today's cultural and creative sectors. Based on the analysis and supported by an online crowdsourcing process with experts and stakeholders, the study puts forward recommendations to policy-makers on what is needed for the CCS in today's digital world. New actors have entered the market and boundaries between creative value chains and other value chains have become blurred. Innovative multidisciplinary approaches are needed to redefine the role of culture, arts and creativity in a complex society in transition.