The Dark Side of Business Flexibility
the policy debates about economic development and the rise of the theory of flexible specialization during the 1980s, I became discontented with the extent to which the proposition was being repeated that new developments in competition and technology were systematically privileging smaller forms of business enterprise. But these were seriously theorized arguments, so I tried to accord them the respect they were due, in the course of offering my critique. Less deserving of respectful treatment were the seemingly endless repetitions of the line, originating with David Birch, that "nearly χ percent of all new jobs are created by [small, mediumsized, "gazelle-like" take your pick] firms," a statement in which χ was sometimes said to be "50," sometimes "75," sometimes "90," sometimes even "virtually 100." Policymakers, including governors and mayors, repeated these assertions, and drew upon them as "evidence" that policies should systematically favor these small business "job generators." Much of this