In this note, the authors discussed a number of conceptual and methodological aspects of the construction of indicator systems for the assessment of integration in the global (or regional) economy. We conceive of best climate as favourable environmental condition that transform inputs and resources derived from its existence to produce outputs. The output of one system may be an input into another system, and thus the performance of a system may depend critically on the performance of other system. Our goal in this paper is to conceptualize the right environment for entrepreneurs to launch entrepreneurial initiatives and what regional economic milieus are capable of generating innovations that can be the basis of high–growth entrepreneurship which could on the long run augments regional economic development. The paper examines a region’s economic output and rate of growth that result from the economic behaviour and fortunes of firms located there, as well as from its ability to attract or generate new firms. The paper aims to “unpack” the various components of the regional economic transformation systems and set forth how they relate to one another and operate to transform inputs to regional economic outputs. We adopted multivariate regression analysis to capture the operational systems and we use cointegration approach to examine the various inputs from within the system. Our findings revealed that the system through which inputs are transformed into outputs consist of multiple systems and that the decision–making institutions at the core of the regional economy are employers (primarily private firms) and the processes through which they make these decisions are market–determined. In short, individual businesses and market conditions are central to regional economic performance.