Impediments to the Schumpeterian Process in the Replacement of Large Firms

Abstract

and participants at the Entrepreneurial Finance Workshop series in Chicago for their suggestions and Shrijata Chattopadhyay, Nobuhiko Kobayashi, and Deliya Kuleshov for assistance in data collection. We are also grateful to Leslie Hannah for generously sharing his painfully gathered list of business directories for circa 1910. The authors acknowledge financial support from the "Blake Family Fund for Ethics, Governance and Leadership." The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research. NBER working papers are circulated for discussion and comment purposes. They have not been peer-reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications.

The Rise and Fall of German Innovation

“…Gutiérrez & Philippon (2019) find that the United States experienced a significant decline in free market entry over the past 20 years, largely due to lobbying and regulations that shelter large incumbents Faccio & McConnell (2020). find evidence, using data from 75 countries since 1910 (including Germany), that political connections and lobbying are indeed responsible for many large incumbent firms avoiding being displaced by new entrants.…”