{"id":575110,"date":"2010-05-21T11:00:00","date_gmt":"2010-05-21T15:00:00","guid":{"rendered":"tag:theatlantic.com,2010-05-21:mt-57052"},"modified":"2010-05-21T11:00:00","modified_gmt":"2010-05-21T15:00:00","slug":"start-ups-surge-in-the-great-reset","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/575110","title":{"rendered":"Start-ups Surge in The Great Reset"},"content":{"rendered":"

Economic crises like the current one have devastating economic and
\nsocial costs, but they also give rise to major rounds of technological
\ninnovation. That’s why I call them Great Resets<\/a>. There was a significant spike in patents in the wake of the Panic and Long Depression of 1873 — and subsequent decades<\/a>
\nsaw the rise of major new innovations from the light bulb, phonograph,
\nand telephones to systems innovations like electric power, telephone
\nsystems, and urban transit (i.e. street cars, cable cars, and subway
\nsystems). The Great Depression was far and away the most
\n“technologically progressive decade of the 20th century,” according to
\nthe detailed research of economic historian Alexander Field<\/a>, outpacing the high-tech boom of the late 20th century by a considerable margin.<\/p>\n

Joseph Schumpeter<\/a>
\nlong ago showed how economic crises give rise to the gales of creative
\ndestruction — as new entrepreneurial individuals and enterprises seize
\nthe opportunity to forge new business models, and new industries
\nrevolutionize and transform the economy. The British economist of
\ninnovation, Christopher Freeman<\/a>,
\nfound evidence that innovations not only accelerate but bunch up during
\neconomic downturns only to be unleashed as the economy begins to
\nrecover, ushering in powerful new waves of technological change.<\/p>\n

\"\"<\/a>
<\/p>\n

A study<\/a>
\nreleased today by the Kauffman Foundation (h\/t: Ian Swain) provides
\nadditional evidence that our current crisis takes the form of a Great
\nReset. According to the study, 2009 was a banner year for new business
\nstart-ups. As the graph above shows, more than 550,000 new businesses
\nwere started over the course of the year. The report found that “the
\n340 out of 100,000 adults who started businesses each month represent a
\n4 percent increase over 2008, or 27,000 more starts per month than in
\n2008 and 60,000 more starts per month than in 2007.”  This represents
\nthe highest rate of new business start-ups in 14 years. The start-up rate
\nfor African Americans also surged to record levels, according to the
\nstudy.<\/p>\n



\n

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\n\"\"<\/a>
\n\"\"\"\"

\n
\nJoseph Schumpeter<\/a> – Business<\/a> – Great Depression<\/a> – Innovation<\/a> – Economic history<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Economic crises like the current one have devastating economic and social costs, but they also give rise to major rounds of technological innovation. That’s why I call them Great Resets. There was a significant spike in patents in the wake of the Panic and Long Depression of 1873 — and subsequent decades saw the rise of major new innovations […]<\/p>\n","protected":false},"author":5959,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-575110","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/575110","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/5959"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=575110"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/575110\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=575110"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=575110"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=575110"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}