Summary of Dynamism in Retreat

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Policy experts note a disturbing trend in the US economy: a reduction in the vibrancy and vitality of the commercial community, evidenced by lower levels of new business formation and entrepreneurial energy. Today, fewer companies are opening their doors than ever before. The Economic Innovation Group – a think tank started by some notable high-tech titans – offers a robust commentary on the causes of reduced US economic dynamism and some prescriptions for altering the trajectory. getAbstract recommends this compelling, timely report to business leaders and state officials.

About the Author

The Economic Innovation Group is a think tank advocating for entrepreneurialism.



In the post-World War II years, the US economy boomed, as creative destruction – “the process of reallocating the economy’s resources across firms and industries according to their most productive use” – enabled new businesses and spawned innovation. At the core of creative destruction lies an economic dynamism that drives the pace and scope of firms entering and exiting the marketplace. New companies bring disruptive ideas to the table, forcing incumbent businesses to remain proactive and competitive. Since the late 1970s, however, dynamism in the United States has slowed considerably...

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