Entrepreneurs are the real jobs engines. That means the only sensible jobs plan is one that helps start-ups grow into Fortune 500 companies.
The best way to promote innovation is to clear the way for the main agents of innovation: the entrepreneurs who create new businesses. Existing firms innovate, but their contributions are usually incremental — improvements in existing products or production processes, or the introduction of new products through pursuit of well-established R&D agendas. When it comes to so-called discontinuous or disruptive innovation — the kinds of breakthroughs that topple the status quo and give rise to whole new industries — the catalysts of change tend to be new firms. Think FedEx, WalMart, Microsoft, and Google, all of which were upstarts without any stake in the existing way of doing things.
How to make life easier for innovative entrepreneurs? The Kauffman Foundation unveiled this past July a wide-ranging series of legislative proposals aimed at reducing barriers to new, potentially high-growth businesses. The package is called the Startup Act of 2011.
Source: Brink Lindsey | The Atlantic