US tech startups: An endangered species?

A steady decline in start-up rates within the technology sector, one that briefly reversed course with the dot-com boom in the late 90s, resumed at the turn of the century and is now plummeting faster than ever, according to a new study released by the Kauffman Foundation, a research organization.

Researchers from the University of Maryland, the Census Bureau and technology research group Engine noted that the sector has historically punched well above its weight in terms of generating new jobs, thus, the findings should alarm policymakers in Washington. “Because young high-tech firms are so disproportionately important for innovation and job creation, a slowdown in this sector calls for a new approach to fostering a stronger entrepreneurial economy,” said Dane Stangler, the group’s vice president of research and policy.