Business incubators can help fledgling firms get off the ground by providing business services and rental space, at below-market costs, for a business's first few years. The payoff for the community is more jobs. Concentrated until recently in urban areas, incubators are now succeeding in rural areas too. (JHZ)

Some states use subsidies, grants, and other public monies to rejuvenate lagging rural economies, but without sound economic analysis to guide these efforts money may go to projects that do not achieve economic development goals. Minnesota's Iron Range programs illustrate what happens when economic analysis is sacrificed in political tugs-of-war.…