The U.S. Chamber of Commerce's recent #LetsGrow event highlighted why Arizona is such a good model for other states when it comes to embracing startups and creating jobs.

The event's panel discussion was moderated by Arizona Chamber President and CEO Glenn Hamer, along with U.S. Chamber executive Suzanne Clark and the governor's chief of staff, Kirk Adams.

Clark said the U.S. Chamber needs to study what's working so well in Arizona to apply the concepts to the rest of the country. Arizona added close to 100,000 jobs in two years, erased its billion-dollar deficit and increased its investment in education without raising any taxes.

Adams said the state’s “competitive to low taxation environment” and lighter state regulations make the state attractive to new businesses. Arizona also embraces innovation, which is a huge plus for startups.

Arizona is the new up-and-coming place for businesses, especially in the tech field, Adams explained. Companies "cannot scale in California; the regulatory environment is just too burdensome,” he said.

Adams said that educational spending should also target low-income environments in an effort to improve the educational experience so all have the opportunity to perform well, rather than only rewarding high-performing schools.

“Outcomes should matter at least as much as how much you’re spending…[and we need to] align incentives to the outcomes we seek,” he said.