(Hidden) Industrial Champions: Origins, Features and Futures of Industrial Small Towns

The proposed research studies the phenomenon known as "hidden industrial champion towns" which are small, peripheral towns that have disproportionately large and globally successful industrial economies. These towns challenge conventional wisdom in economic geography and are often thought to face significant obstacles to development. However, they are a hallmark of many national urban systems in Central Europe, even being touted as economic engines of countries like Slovenia. The study aims to take a closer look at the origins of these towns in Slovenia and Hungary, the factors behind their apparent economic success, and their possible future development. The main objective of this research is to comparatively investigate how industrial champion towns overcome smallness and peripheral location through actions of individual actors and to examine the attitudes of local communities towards their perceived success. This research has important theoretical implications for economic geography and regional development, and aims to engage both academic and non-academic audiences in order to maximize its impact.

Studies on adaptability and resilience of single-company or single-industry towns in post-socialist Central Eastern Europe suggest that dominant firms benefit from their strong influence on the limited labour market and offer more compensatory benefits to workers. Factors behind success include small urban size fostering new high-tech industries, reliance on endogenous knowledge base and strategic relationships with customers, universities and suppliers, and "slow innovation" strategies. Research also emphasizes the actions and micro-processes between people in economic development. Our intention is to use hidden industrial champion towns as an ideal model to explore how human agents in local community can transform geographical disadvantages (peripheral location, small population and limited access to labour and services) into advantages that are used for new development paths. Additionally, we focus on the local community since it is important to know whether economic success translates to the socioeconomic prosperity of the local community or if there are tensions between the dominant economic companies and community members.

The research project aims to study the success of industrial champion towns in Slovenia and Hungary, specifically those with less than 30,000 inhabitants at the municipal level, higher than average employment in industry and export orientation. The project will be divided into three parts: Origins, Features, and Futures. In the Origins section, the researchers will explore the historical change and transformation of the towns to understand how their economic performance emerged and changed over time. In the Features section, the researchers will investigate why these towns are economically successful by focusing on the innovation entrepreneurs and local communities in the six most representative towns. By conducting a survey, they will also investigate the attitudes of local communities and establish if the economic success translates into better socioeconomic development within the community. Lastly, in the Futures section, the researchers will examine the future prospects of these towns and their potential for sustainable development. They will examine future narratives of various actors in the community to identify possible areas of (dis)agreement between them and conduct a participatory workshop to invite them to co-create research results.

In conclusion, this project is highly relevant for contemporary Europe. To build a sustainable and resilient society, it is crucial to maintain and strengthen industry while being attentive to the needs of local communities and the environment. The perspectives, concerns, and relationships of small industrial communities with economic and public actors must be better understood.