Getting the Most Bang for Your Buck: An Analysis of States Relative Efficiencies in Promoting the Birth of Small Firms
This SBA paper examines the role state policies and programs play in the rate of business births. The authors conclude that states can be quite influential in this area, and that states with larger populations tend to be more efficient in providing this kind of support.
Link
http://www.sba.gov/advo/research/rs290tot.pdf