The importance of business climate and people climate on regional performance, Regional Studies. Creativity and talent are considered key factors in regional development due to the connection between growth, city-regions and human capital. To come to a deeper understanding of the relevance of recent amenity-driven theories and how they are related to employment and gross regional product per capita (GRP) at the regional level, this paper analyses the influence of business climate (business-friendly assets) and people climate (amenities). Based on panel-data regressions, it is shown that both business and people climate are related to regional performance. The exact nature of these relationships is, however, dependent on how both regional performance and business or people climate is defined.