Most governments are eager to nurture promising startups with lots of growth potential. Such startups can generate new jobs, spur innovation and new patenting, and, in the best of cases, bolster an entire local economy.

It’s no surprise, then, that local politicians are often willing to offer up financial support. For instance, some cities and states have extended loans and grants to the startups they deem most promising. Yet this strategy requires that governments choose the right startups, which is a difficult task even for experienced investors, let alone for government agencies.

But do tax credits for angel investors actually produce the kind of broader economic boom that politicians expect? Read More >>