<p>Industrial culture can be a valuable resource for path development in industrial regions. This is particularly true in small cities that are characterised by a higher degree of industrial specialisation and, at the same time, a less developed knowledge-intensive services sector than in metropolitan areas. This paper evaluates the role of industrial culture in the industrial development (1945–2024) of two small cities in a Czech peripheral region from the perspective of evolutionary economic geography. The comparative study revealed that industrial culture had a positive impact on path development, although this was conditioned by significant employment in industry. In contrast, industrial heritage had a limited impact on economic development. In the context of peripheral regions, which are often dependent on changes in the exogenous environment, industrial culture has proven to be a set of endogenous capabilities that have embedded industry within the region. Such embeddedness can represent both opportunities and barriers for the long-term economic development, depending on the economic potential of the sector in which the city specializes. The study thus offers a rather critical perspective on the role of industrial culture. The conclusion discusses the contributions to evolutionary economic geography literature and the practice of small peripheral cities development.</p>