Abstract
An even more obvious source of unemployment than technological progress is the exit of incumbent firms. According to Schumpeter’s (1943) notion of ‘creative destruction’, the turnover of firms is closely related to technological progress: Newly founded firms enter the market with new and innovative products. They replace incumbent firms and are eventually substituted themselves by innovative entrants.
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© 2002 Springer-Verlag Berlin Heidelberg
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Kaiser, U. (2002). Financial distress of newly founded service sector firms. In: Innovation, Employment, and Firm Performance in the German Service Sector. ZEW Economic Studies, vol 16. Physica, Heidelberg. https://doi.org/10.1007/978-3-642-57453-5_5
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DOI: https://doi.org/10.1007/978-3-642-57453-5_5
Publisher Name: Physica, Heidelberg
Print ISBN: 978-3-7908-1481-1
Online ISBN: 978-3-642-57453-5
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