Final answer:
Due to their remarkable success rate, incubators continue to grow in popularity as they provide essential services to new businesses. These incubators are part of governments' economic development strategies to stimulate economic growth and innovation.
Step-by-step explanation:
State and city governments have promoted facilities where new businesses can share common services such as secretarial, accounting, and legal services. Due to their remarkable success rate, incubators continue to grow in popularity. These incubators help new businesses by providing the essential services and support needed to grow and become successful.
The use of incubators is part of a broader strategy by governments to promote economic development and innovation within their regions. This approach, which includes creating Special Economic Zones (SEZs), providing incentives like tax breaks, and reducing regulations, has been used not only in the United States but also in other countries like China, as a way to attract foreign investment, stimulate job creation, and foster the growth of new industries. By supporting these emerging enterprises through various economic incentives, governments seek to create a more vibrant and competitive economy that can lead to increased economic growth, technological advancement, and the building of industries that benefit both the national and global economy.