Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/249859 
Year of Publication: 
2021
Series/Report no.: 
Working Paper No. 2021-23
Publisher: 
Federal Reserve Bank of Atlanta, Atlanta, GA
Abstract: 
This working paper reviews recent empirical evidence on large firms and nonproductive strategies that hinder creative destruction and reallocation. The focus is on three types of nonproductive strategies: political connections, nonproductive patenting, and anticompetitive acquisitions. Across different contexts using granular micro data sets, we overwhelmingly see that as firms gain market share, they increasingly rely on nonproductive strategies but reduce their productive, innovation-based strategies. I also discuss theoretical channels, aggregate implications, and potentials for some policies.
Subjects: 
creative destruction
innovation
growth
patents
political connections
firm dynamics
JEL: 
O3
O4
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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