The research examines the role of the creative industry in urban and regional economic development, with a special focus on medium-sized cities such as Szombathely. The cultural and creative sector is understood as a key field of knowledge-based and sustainable development that fosters innovation, social cohesion, and local identity. The study focuses on the interrelations between creative ecosystems, cultural institutions, and urban development policies. Its aim is to explore how the creative industry contributes to urban resilience, economic diversification, and sustainable urban growth.