“Startup Cities compete to provide new and better functions—in this case, to provide citizens with services they want and need. One new zone hosting a Startup City might pioneer different environmental law or tax policy. Another may offer a custom-tailored regulatory environment for finance or universities. Still another may try a new model for funding social services. Startup Cities are a powerful alternative to risky, difficult, and politically improbable national reform. If bad social techs lead a zone to fail, we don’t gamble the entire nation’s livelihood. People can easily exit a Startup City—effectively putting the project ‘out of business.’”
http://www.fee.org/the_freeman/detail/hacking-law-and-governance-with-startup-cities