State governments should incentivize companies to locate their R&D projects in their regions through intellectual property protections and tax breaks. Sector-specific tax incentives can be offered to companies to create jobs in these underemployed regions, though they should include provisions to ensure that companies deliver on their promise of job creation (including evaluation criteria and the possibility of withdrawal and reimbursement of incentives). Consistent support for private-sector R&D is critical for maintaining leadership in innovation and technology and for creating high-skill opportunities for workers.