My husband had his own business for 20 years and every time he turned around the State wanted more from him. He couldn't get out fast enough. The State turned into basically a welfare and tourist state for the most part not to mention the #1 State in the Union with the highest taxes.
Manufacturing has taken a hit all over the country, regardless of taxes, but I do get your point. The higher the taxes, the less incentive to stay in business.
But even with no taxes and extra perks, (so literally it costs next to nothing to start up, and run the first few years), people just aren't innovating. There are only so many communications companies, soft ware companies, etc...
I think (and this is my opinion and not based in research) that we are in a weird in-between stage.
Since the Industrial Revolution America has been about manufacturing. We produced good little male and female factory workers, who did what they were told, eventually unionized, and waited for someone to tell them what to do.
Some even argue our school systems are designed to produce an "industrial force." Which means, do what you're told, work to live, not live to work mentality. (Yeah, I know lots of people say this...but find someone PASSIONATE about their job, someone who feels LUCKY to be able to do it, and they generally won't have this mentality. While they may not live to work, life sure doesn't feel as worthy without it.)
Now that traditional industry is almost gone, is gone for some states. And people are still in the factory (I do my time, get my money and leave) mentality...many of them are sitting on unemployment, wondering what they're going to do, waiting for someone to come along and tell them what to do. Why? Because they weren't trained to be innovative, have new ideas, develop them, and run with it. They're still waiting for things to "get back to normal."
It's not just industry, its the whole society. Even at the university level, there is a void of knowledge when it comes to guiding/developing innovative thinking. You can't get two people to agree on what it means!
Get a room full of people raised up in the "industrial" mindset and educational system..and what do you have? Lots of hard workers, sure, but none experienced at taking an idea, fleshing it out, running with it....so you see universities scrambling to come up with some sort of system to teach innovation....when its been bred out of the public for decades.
It's like breeding out blue eyes (innovation/creativity) because brown eyes (factory mindset/buy more so we can make more) are more profitable. And doing it for decades. The one day brown eyes aren't profitable.
All the sudden you have several generations of brown-eyed people trying to be blue-eyed, but who knows how to do that?
So we're stuck in this in-between stage between industrial mindset and needing to be innovative.
Cities can offer no taxes, and all the free buildings they want, if people can't invent things, create common use items, innovate, its all for nothing. (Again, my opinion.)
So the real issue isn't helping businesses start up...its getting people's long dormant and ignored creativity flowing....and I don't mean sitting around "brain storming." hahahahah.
Wow....as you can see, I'm still fleshing out this all in my head....hope you understand it.