Is America Encouraging the Wrong Kind of Entrepreneurship?

Most people think of entrepreneurship as being the "productive" kind, as Baumol referred to it, where the companies that founders launch commercialize something new or better, benefiting society and themselves in the process. A sizable body of research establishes that these "Schumpeterian" entrepreneurs, those that are "creatively destroying" the old in favor of the new, are critical for breakthrough innovations and rapid advances in productivity and standards of living.

What about the other kind of entrepreneurship? Do we also see a rise in unproductive entrepreneurship, as Baumol theorized?

Robert E. Litan and Ian Hathaway

Full Story: https://hbr.org/2017/06/is-america-encouraging-the-wrong-kind-of-entrepreneurship?referral=00563&cm_mmc=email-_-newsletter-_-daily_alert-_-alert_date&utm_source=newsletter_daily_alert&utm_medium=email&utm_campaign=alert_date&spMailingID=17446524&spUserID=MTM4NDQ0NTA1NTkS1&spJobID=1041023171&spReportId=MTA0MTAyMzE3MQS2