Economic Theory

Many say the decline in new business formation over the past 30 years has been caused by increased monopoly. But there is no statistical relationship between start-up creation and change in concentration by industry; high-growth start-up activity is healthy.
Economic Theory
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May 18, 2020
Digital technology adoption has spread rapidly through the economy, revolutionizing many processes. A new study examines how this change has taken place, interviewing 1,700 companies across the United States and European Union.
May 18, 2020
In short: no. Profits are difficult to measure accurately, but the best method is to focus on domestic earnings outside the financial sector as a share of net value added. By that measure, the long-term trend has been in decline.
March 26, 2020
ITIF held a webinar on March 26 exploring how competition authorities can better consider the productivity and competitiveness implications of antitrust policy, including in merger reviews.
February 14, 2020
ITIF supports the decision by DOJ and FTC to update their guidelines but believes they could be strengthened by a deeper discussion of several key points about the role vertical mergers play in competitive markets.
January 27, 2020
Economic espionage represents a significant threat to the technological advantage of innovative companies, especially in high-tech sectors, where trade secrets are often worth billions of dollars. According to the Justice Department, China is by far the largest source of economic espionage, much of which is government-backed.
October 7, 2019
U.S. economic data has lagged behind the explosion of the digital economy, preventing researchers from fully understanding the extent of e-commerce and its impact on the broader economy. The Census Bureau is working to remedy this, releasing the first quarterly e-commerce report in August and including services in the annual E-Stats report for the first time in September.
September 16, 2019
The rise of the Internet has allowed billions of people to access services that would not exist otherwise, while driving the growth of technologies that power them. A new study has attempted to quantify this effect, examining the rate of Internet usage across 76 countries between 1995 and 2016.
August 1, 2019
The United States is one of the most prosperous economies on earth because our elected officials and other leaders have embraced, or at least accepted, “creative destruction.”
July 15, 2019
Manufacturing’s smaller role in the U.S. economy is hotly debated, with many blaming automation for its demise. But analysis of a recently expanded BEA and BLS dataset demonstrates both how stark manufacturing’s decline has been and that fears of automation are largely misplaced.
June 17, 2019
Student mobility has increased dramatically in recent years with 4.1 million students studying internationally in 2015, more than triple the 1.3 million international students in 1999. New research shows that these students are now far less concentrated in developed nations.

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