Competitive Advantages of a Startup City-State?

We all know that current regulatory systems hamper progress and impede innovation. An innovative society with rules based on common sense and an understanding of both the seen and the unseen would lead to much more rapid progress and volume of value creation.

But this general argument – even when boosted by empirical data about Hong Kong or Special Economic Zones – is not good enough to pitch developers or sign initial business partners (who need to be in some specific industry!). To create a thousand nations, we need a thousand specific business models based around the specific competitive advantages of each nation’s unique regulatory offering. We need ideas like:

So: imagine that you had the freedom to create any regulatory environment that the nations of the world would tolerate. You can’t reverse-engineer the top selling pharmaceuticals, manufacture them w/o a patent, and sell them by mail to the United States. You can’t develop world-smashing weapons for super-villains. You can’t create the ultimate anonymous cash system along with an assassination market. In other words, you can’t let your country’s local freedoms directly threaten the sovereignty of existing nations. But you can do all the medical tourism, non-anonymous currencies, local IP-free industries, and R&D you want. For example, more reasonable licensing policies are clearly great for medical tourism (bring in skilled doctors from India and Thailand), but what else do they enable?

What key freedoms and protections would you create, and what immediate industries would they enable? What business would you start if you moved there? Respond here or on Reddit.