Regardless numerous theories and explanations upon regional competitiveness factors, the most systematic way explains regional competitiveness throughout the perspective of life standard quality rising, and measure it throw regional product, labor productivity and (un)employment rate. The factors of regional competitiveness can be defined as factors of urban competitiveness and contain economic and strategic factors. The regions characterized by development and presence of larger number of different factors (high-quality human capital, strong support provided by formal and un-formal institutions, convenient geographic location, developed infrastructure), have stronger competitive position. The city of Kragujevac is an administrative center of Sumadija district, but also the political, economical, cultural, health and educational center. Counting more than 180.000 of citizens, the city of Kragujevac belongs to the group of larger cities in Serbia, and its relevance on the national level it has primarily deserved as the center of the Automotive industry and as the University center. Those facts are important for active economical development of the city, but also for the continuous monitoring by both domestic and foreign investors. In accordance to this, the future development of the city of Kragujevac, besides economical and political factors, requires focus on increasing and developing of competitiveness of its economy and economic entities.