Innovative startups are growing much more slowly than comparable companies did in the past. Surprisingly, a major culprit is technology—specifically, proprietary information technology in the hands of large firms that dominate their industries.
We are accustomed to thinking of technology as creating disruption, in which innovations introduced by smaller, newer companies enable them to grow and ultimately replace older, less productive ones. But these proprietary technologies are now suppressing industrial turnover, which has declined sharply over the last two decades. This loss of dynamism has slowed the growth of innovative firms. And researchers have tied that slower growth to substantially slackened productivity growth, which affects the entire economy, all the way down to personal incomes.
From MIT Techonology Review
View Full Article (May Require Paid Registration)
No entries found