Creative destruction among industrial firms in the United States

Schumpeter proposed that innovation by new firms entering existing markets was the major mechanism of competition in capitalism. Recent formulation and analysis of mathematical models of the dynamics of capitalism seem to confirm the importance of new firm entry to ensure that technological innovation does not result in increased concentration of industrial activity. Empirical evidence is provided here to demonstrate that there is substantial movement of new firms into the ranks of the 500 largest industrial firms to demonstrate that the dynamics of new firm entry and growth still exist in U.S. capitalism. Furthermore, there is no evidence that asset concentration among the 500 largest industrial firms has increased.