Product development corporations have been established by eight states for the purpose of promoting the development of innovative sectors of the economy by augmenting the supply of risk capital. They operate by providing a grant to a firm to finance the design, testing, and commercialization of...

This article provides a preliminary analysis of the spatial distribution of business incentives across 8 states and 27 cities. A variation on the "hypotheticalfirm " method is used to measure the size of tax and nontax incentives offered by those states and cities. The net present value of...