The Composition and Dynamics of Technology-Enabled Entrepreneurship

Using data on nearly all U.S. business registrations since the turn of the twentieth century, and a set of 386 major technologies invented over this period, we study the level, composition, and dynamics of entrepreneurial activity around new technology. We find a large, varied entrepreneurial economy rooted in innovation, where the vast majority of startups are not high-growth technology entrepreneurs but rather local, low-growth firms engaged in a wide range of complementary activities. The level and composition of this firm creation varies across technologies and over the technology lifecycle, and can be predicted from a technology's initial patents. We discuss implications of this evidence for research in entrepreneurial and technology strategy, business ecosystems, and industry dynamics.