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Week of June 9 - 15, 2008 |
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‘Churn’ Good for Growth and Productivity
Job losses and business failures are
certainly distressing to the individual, but new research by the Ewing
Marion Kauffman Foundation shows that the “churning” of jobs and
businesses also sows the seeds for future growth and productivity gains.
According to “Turmoil and Growth: Young Businesses, Economic Churning
and Productivity Gains”, new and growing businesses create millions of
jobs each year. This is especially relevant considering the fact that
young businesses have higher productivity levels and faster productivity
gains than more mature businesses, particularly in the early years. In
effect, the churning process replaces lower productivity businesses with
new, more productive ones, thereby increasing productivity and raising
living standards. |
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Wells Fargo/Gallup: Small Business Confidence at Record Lows
Small business owners,
concerned about more immediate needs than long-term national
productivity gains, are feeling increasingly gloomy about the state of
the economy. According to the Wells Fargo/Gallup Small Business Index,
their confidence has been dropping for more than a year. But, in April,
it struck rock bottom as the quarterly index hit its lowest ever score
of 48. This figure is 35 point drop from the January 2008 score of 83,
and 68 points less than the index’s high point in December 2006. A
number of factors are scaring small business owners--especially concerns
about future cash flow. Despite the gloom, 86% are satisfied as small
business owners. |
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Linking Science and State Economies: STEM and R&D Data
If you are curious about how your state is
performing in terms of its R&D spending or promoting STEM (Science,
Technology, Engineering and Mathematics) education, you’ll be interested
in a new resource from the Alliance for Science and Technology Research
in America (ASTRA). ASTRA has developed state fact sheets for all fifty
states (and the District of Columbia) that depict how each state is
performing in each area. The fact sheets use data from an array of
sources, including the Census Bureau, National Science Foundation, U.S.
Bureau of Labor Statistics, National Venture Capital Association,
Department of Education and the Ewing Marion Kauffman Foundation. |
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World Bank Growth Commission Report
How can we help stimulate economic growth
across the globe? A newly released report from the World Bank Growth
Commission, chaired by Nobel Laureate Michael Spence, tries to take a
fresh look at the issues. The report provides "a decision-making
framework for achieving inclusive high growth,” acknowledging that there
is no silver bullet. However, a couple of key themes predominate. First,
the report notes that poverty cannot be eliminated without growth.
Simply re-dividing the pie will not resolve current inequities—sustained
economic growth is also required. Second, resources--especially
labor--must be mobile. Labor market flexibility is a key prerequisite to
sustained economic growth. Finally, effective leadership is necessary.
Growth is a long-term challenge that requires political and business
leaders who are persistent, pragmatic, and operate transparently. |
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Explaining Metropolitan Economic Performance
A new article in the Journal of the American
Planning Association (JAPA) examines the claims by researcher Richard
Florida that the presence of a strong “creative class” explains the
differences in the economic performance of leading metropolitan areas.
Florida contends that new measures, such as local ethnic diversity and
the presence of local creative assets, are the key to future economic
prosperity. The article finds limited support for these claims. In
assessing metro economic performance, more traditional factors matter
most. While some of Florida’s factors are correlated with local economic
growth, their impact is much more limited when compared to more powerful
measures such as a city’s educational attainment levels and its industry
mix. Based on these findings, the authors contend that many traditional
strategies to promote urban development, such as investing in local
education and supporting local industry, still make sense. |
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Calling All Inventors (and Educators)!
AIf you’ve got a good idea for a new product
or technology, you might want to check out some interesting grant
programs sponsored by the National Collegiate Inventors and Innovators
Alliance (NCIIA). Funded by the Lemelson Foundation, NCIIA now operates
three separate grant programs that provide up to $50,000 to support
efforts that move innovative products or technologies from the idea
stage to prototype. They can also provide grants for innovative
education programs focused on the same goal of moving ideas to
commercialization. This is a great opportunity for colleges,
universities, research institutions, and their students. A new round of
funds has just been announced with deadlines in the Fall and Winter of
2008. |
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The National Dialogue on Entrepreneurship is an initiative of the Public Forum Institute made possible by a grant from the Kauffman Foundation of Kansas City. Through NDE-news, we bring you short summaries and analyses of various trends driving entrepreneurship around the world. Subscribe now to receive your weekly copy. Archived issues are available online. |
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National Dialogue on Entrepreneurship
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stories © 2008 The Public Forum Institute
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