Land-Use Transformation and the Prospects of Spatial Knowledge Concentration: The Case of the Northern Industrial Area of Szombathely

The use of space has changed over time, revealing not only physical characteristics but also ideologies, narratives, and economic and political interests. As a result, spaces go beyond their practical functions to serve as symbols of struggle, power, or visibility, often connected to these broader forces. This paper reviews the spatial characteristics and changes in the land use of the so-called Northern Industrial Area of Szombathely City since the mid-1970s. It explores the area’s characteristics, future development plans and their historical antecedents, while studying the spatial concentration of knowledge and its impacts beyond the industrial zone, extending to the city and the wider region. The study indicates that knowledge concentration requires high-quality training and economy-integrated higher education, active stakeholder cooperation, a critical mass of intellectual resources capable of generating and implementing innovation, and an adequate quality of life. It argues that the city’s industrial structure must shift from labour-intensive to knowledge-intensive ecosystem through coordinated development efforts, which may improve economic robustness, strengthen regional positioning, raise profitability and competitiveness, and contribute to the creation of a resilient knowledge economy.