Friday , January 22 2021
Home / T. Cowen: Marginal Revolution / American Ph.Ds are failing at start-ups

American Ph.Ds are failing at start-ups

Summary:
We document that since 1997, the rate of startup formation has precipitously declined for firms operated by U.S. PhD recipients in science and engineering. These are supposedly the source of some of our best new technological and business opportunities. We link this to an increasing burden of knowledge by documenting a long-term earnings decline by founders, especially less experienced founders, greater work complexity in R&D, and more administrative work. The results suggest that established firms are better positioned to cope with the increasing burden of knowledge, in particular through the design of knowledge hierarchies, explaining why new firm entry has declined for high-tech, high-opportunity startups. Here is more from Thomas Åstebro, Serguey Braguinsky, and Yuheng Ding. The post

Topics:
Tyler Cowen considers the following as important: , , , ,

This could be interesting, too:

Tyler Cowen writes Scott Alexander’s Substack

Tyler Cowen writes That was then, this is now, now it’s now again

Tyler Cowen writes Thursday assorted links

Tyler Cowen writes Federal minimum wage of ?

We document that since 1997, the rate of startup formation has precipitously declined for firms operated by U.S. PhD recipients in science and engineering. These are supposedly the source of some of our best new technological and business opportunities. We link this to an increasing burden of knowledge by documenting a long-term earnings decline by founders, especially less experienced founders, greater work complexity in R&D, and more administrative work. The results suggest that established firms are better positioned to cope with the increasing burden of knowledge, in particular through the design of knowledge hierarchies, explaining why new firm entry has declined for high-tech, high-opportunity startups.

Here is more from Thomas Åstebro, Serguey Braguinsky, and Yuheng Ding.

The post American Ph.Ds are failing at start-ups appeared first on Marginal REVOLUTION.

Tyler Cowen
Tyler Cowen is an American economist, academic, and writer. He occupies the Holbert C. Harris Chair of economics as a professor at George Mason University and is co-author, with Alex Tabarrok, of the popular economics blog Marginal Revolution. Cowen and Tabarrok have also ventured into online education by starting Marginal Revolution University. He currently writes the "Economic Scene" column for the New York Times, and he also writes for such publications as The New Republic, the Wall Street Journal, Forbes, Newsweek, and the Wilson Quarterly.

Leave a Reply

Your email address will not be published. Required fields are marked *