Despite its strong technological profile, the city of Delft has problems to improve its employment situation. What is more, Delft’s considerable knowledge base has not been sufficient to promote a sustainable type of urban development that could benefit all of its citizens. This case-study analyses Delft’s current business and people climates with the purpose to indicate directions for the adjustment of Delft’s local development strategy to improve its sustainability. The results point out that Delft has placed very much emphasis on improving its business climate, but not so much attention has been paid to its people climate. Delft Knowledge City strategy still has little to offer to creative and foreign knowledge workers and students. In terms of people climate, shortages in housing and cultural amenities diminish Delft’s capacity to attract creative people. Further, the strategy still remains divorced from the worries of common citizens and the non-knowledge economic sector.