Pennsylvania has identified that a mere 0.3%, less than one third of one percent, of all firms created 74% of all new net jobs over a ten year period of time.
The implications of this fact are that high-growth firms, often found in high-tech industries such as advanced manufacturing, are critical job creators and core drivers of economic growth. Mom-and-pop businesses can flourish only when these high-growth firms flourish. The challenge for state and federal policymakers is to nurture the development of these cutting-edge firms, including by supporting the R&D activities that often underlie development of their innovative products and services, to ensure they are supported by a robust physical and digital infrastructure, and to cultivate a business friendly-environment that helps eliminate the unique impediments they may face. This is one hallmark of a new approach to economic policy that focuses on innovation and competitiveness.