[mc32]

I imagine NV sees this as a kind of loss leader. If they bring in Musk this, it is expected, could kick off more innovative industries which would diversify the NV economy.

The hope is, that like zappos, this could kick off more technology oriented industries to consider NV as a possible location for their business. You don't want your state to become the Rhode island --the one which does little to diversify and attract new industry.

[alexmarcy]

I agree, I'm just not sure that having to give up existing tax incentives to other industries to fund a $1.3B subsidy to one company is the way to go about generating new industry in the area.

There is a small group of start-ups in the area that seem to be doing well for themselves and every so often there is talk of Reno becoming the next Silicon Valley, so I think the SAAS sector is covered.

Reno also has Sierra Nevada Corp, which was in competition with SpaceX and Boeing on some space related ventures for whatever that is worth.