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U.S. Business Dynamism In Decline, Finds Brookings Researchers
Business dynamism, a measure of firm destruction and creation in an economy, has steadily declined in the U.S. over the past 30 years, according to a study released by the Brookings Institution by Ian Hathaway and Robert Litan. Dynamism has long been considered a key element of innovative economies, indicative of entrepreneurship and labor market mobility. The U.S. decline appears to have been consistent across industries and geographic areas. In an update to the original article, Hathaway and Litan clarified that their study was not proposing an explanation for the trend, which other sources had linked to the rise of the retail and service sectors or to specific government policies. Read the report…
stats, entrepreneurship