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Uncovering Creative Destruction brought about by New Firm Formation: A New Method and Data Source

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  • James Derbyshire

Abstract

Atherton (2006) has noted that the current policy preoccupation with increasing start-up levels has been justified in terms of the ‘creative destruction’ it is expected to bring about. However, this article shows that the most commonly employed measures of start-up, and the most common dataset on which they are employed, are inadequate for assessing start-up policy justified in these terms. A new dataset and method is introduced that is better able to uncover creative destruction taking place in the business stock.

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  • James Derbyshire, 2009. "Uncovering Creative Destruction brought about by New Firm Formation: A New Method and Data Source," Local Economy, London South Bank University, vol. 24(4), pages 310-322, June.
    • Handle: RePEc:sae:loceco:v:24:y:2009:i:4:p:310-322
    DOI: 10.1080/02690940903026845
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