The article is composed of two parts. The first is based on theoretical geographical-developmental factors of balanced competitiveness of cities (regions) in conditions of globalization and the emphasized role of a creative milieu as fundamental development impulses. The second one explores the importance of Ljubljana and its role in the system of innovative urban centers in contrast to the metropolis agglomerations in the wider surroundings employing empirical findings. We support its position using the geographical dimensions of innovative dynamics as the fundamental development generator for the entire national urban system and evaluate its developmental research potential as well as investment, economic, and population capacities from the viewpoint of the opportunities offered by its central position and function as a capital city.