1 Index based on cost of labor, energy and taxes.
2 Measures educational attainment, net migration and projected population growth.
3 Measures regulatory and tort climate, incentives, transportation and bond ratings.
4 Reflects job, income and gross state product growth as well as unemployment and presence of big companies.
5 Reflects projected job, income and gross state product growth as well as business openings/closings and venture capital investments.
6 Index of schools, health, crime, cost of living and poverty rates.

Sources: Moody's Economy.com; Pollina Corporate Real Estate; Pacific Research Institute; Tax Foundaion; CFED, Sperling's Best Places.