Modern urban development, as well as the competitiveness on a particular location, largely depends on the availability of adequate human resources at various levels (arenas) of action, which includes the following areas, policy design and implementation, entrepreneurship and civil society, as well as on the optimum use of entrepreneurial and technological infrastructure. In addition of being the capital ofCroatia, theZagrebCityis an urban centre that often crosses the national borders with its actions. It seems that within theZagrebCity, regardless of the significant concentration of companies, as well as the institutions of national and international importance, there is still room for progress to improve the coordinated action of institutions, companies and civil society in order to achieve a higher level of competitiveness and higher quality of life. The aim of the presentation is to present the characteristics of theZagrebCity’s innovation system, and the connection of this approach with theZagrebCity’s competitiveness. The recommendations presented in the paper can be used in the design of more efficient programs aimed at the better use of knowledge and technologies. This should result both in the increase of competitiveness as well as the improvement of the quality of life within the area of the ZagrebCity.