International Scientific Journals
of Scientific Technical Union of Mechanical Engineering "Industry 4.0"

Industry 4.0 programs and other initiatives like the industrial internet are changing the way the industry works today. Cities with existing significant industrial capacities or the ones who want to attract such investments need to prepare for the changing needs of the industry. We expect the the trends of automation and efficiency improvement to continue. The production section of the value chain is becoming more and more competitive and therefore less profitable relative to Research and Development or Product design. We also expect product quality and meeting personal customer needs to become key differentiators in the new area of personalized mass production. Nowadays innovation is happening in ecosystems. We are proposing a measurement system called Smart Collaboration Index to assess innovation capabilities of cities in the new area.

From the beginning of the 21st century the industrial activity and potential are key factors of urban development just like geographical location. The aim of this study is to analyse urban development strategies in the light of the fourth Industrial revolution. The first part presents the challenges the cities are facing, and the possible answers: introducing a concept to create Industry 4.0 "ready" urban environment and to build Smart Cities. In addition a theoretical framework of urban development strategies is also introduced. The second part is an analysis of the urban development strategies of two Hungarian automotive-industry cities Kecskemét and Győr based on the above mentioned criteria