What Happened to US Business Dynamism?
https://www.journals.uchicago.edu/doi/epdf/10.1086/724289
Abstract
We attempt to understand potential common forces behind rising market concentration and a slowdown in business dynamism in the US economy, through a micro-founded general equilibrium model of endogenous firm dynamics. The model captures the strategic behavior between competing firms, its effect on their innovation decisions, and the resulting “best-versus-the-rest” dynamics. We consider multiple potential mechanisms that can drive the observed changes and use the calibrated model to assess their relative importance, with particular attention to the implied transitional dynamics. Our results highlight the dominant role of a decline in the intensity of knowledge diffusion from frontier firms to laggard ones. We present new evidence that corroborates a declining knowledge diffusion in the economy.
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Has US business dynamism declined? By Vivekanand Jayakumar, The Hill - 09/30/20
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https://www.journals.uchicago.edu/doi/epdf/10.1086/724289
Abstract
We attempt to understand potential common forces behind rising market concentration and a slowdown in business dynamism in the US economy, through a micro-founded general equilibrium model of endogenous firm dynamics. The model captures the strategic behavior between competing firms, its effect on their innovation decisions, and the resulting “best-versus-the-rest” dynamics. We consider multiple potential mechanisms that can drive the observed changes and use the calibrated model to assess their relative importance, with particular attention to the implied transitional dynamics. Our results highlight the dominant role of a decline in the intensity of knowledge diffusion from frontier firms to laggard ones. We present new evidence that corroborates a declining knowledge diffusion in the economy.
The disruption con: why big tech’s favourite buzzword is nonsense
https://www.theguardian.com/news/2020/sep/24/disruption-big-tech-buzzword-silicon-valley-power
Has US business dynamism declined? By Vivekanand Jayakumar, The Hill - 09/30/20
https://thehill.com/opinion/finance/518999-has-us-business-dynamism-declined/