Changes

Annual job creation reflects a net addition of employment at a particular business through one of two channels—the expansion of employment at an existing business establishment or the birth of a new one in a particular year. Job destruction reflects a net loss of employment—when an existing business either contracts employment or closes its doors.

'''Young High Tech Firms'''

Analysis: The number of young high-tech firms increased considerably during 1982 to 2000 and starts to decline after 2000. For the private sector as a whole, young firms held steady throughout much of this period and start to decline after 2008. The slope of decline for high tech sector is slightly deeper compare to the total private sector.

'''Entrepreneurship Rate'''

The entrepreneurship rate in the high-tech sector has declined significantly despite the actual increase in absolute numbers during the same period. The high-tech entrepreneurship rate fell from a high of nearly 60 percent in 1982 to a low of 38 percent by 2011.

'''Conclusion:'''

The pace of business dynamism, as measured by the pace of job reallocation, has declined in the high-tech sector in the post-2002 period at a pace that exceeds that of the overall economy.

==References==