Dynamism in Retreat: Consequences for Regions, Markets, and Workers

This report adds a number of original findings to existing literature on the state of dynamism in the U.S. economy.  Local, regional, and national economies all depend upon constant economic rebirth to produce progress and well-being. Economic rebirth in turn relies on a cycle of creative destruction in which new ideas, technologies, and industries are constantly—often quite subtly— disrupting and replacing those of the past. When working properly, this cycle ensures an economy evolves rather than calcifies. However, today’s economy is one in which arguably the most vital “creative” force—the birth of new businesses—has fundamentally deteriorated, leaving the effects of “destruction” unchecked.