Report Points to Success Rates of Companies Spun from Federally Funded Research Universities
Hoping to draw attention to declining federal funding for basic research, a nonprofit group of public and private research universities unveiled a report highlighting the success of 100 companies that trace their roots to a federally funded research university. Of the companies highlighted, 89 remain in business today, which is far better than the U.S. average new business survival rate of 50 percent after five years, the report notes. Moreover, 16 of the 20 youngest companies (less than five years old) also remain in business.
Startups Continue Several Multi-Decade Declining Trends, According to Kauffman Study
The pace of business startups in the U.S. has exhibited a long-run decline that started in the early 1980s and has continued through 2010, according to a new report — Where Have All the Young Firms Gone? — from the Kauffman Foundation. Using data from the U.S. Census Bureau's Business Dynamics Statistics (BDS), the report found several other long-run declines in the business activity of U.S.
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.