In a glass-walled conference room at the California headquartersof Space Exploration Technologies Corp., Chief Executive OfficerElon Musk told Texas officials he was interested in building theworld's first commercial rocket launchpad in their state — if thestate could compete.

In the months after the 2011 meeting, state and local officialsgave Musk, a billionaire, what he and his lobbyists sought: about$20 million of financial incentives, laws changed to close a publicbeach during launches and legal protection from noise complaints.SpaceX, as the company is known, hasn't said whether the Texassite, near Brownsville, the poorest metropolitan area in thenation, will be selected over locations in Florida, Georgia andPuerto Rico.

State and local governments often fall into bidding wars forjobs, offering tax breaks and sweeteners amounting to $70 billionannually, according to Kenneth Thomas, a political scienceprofessor at the University of Missouri in St. Louis.