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U.S. startups are in a surprising 13-year slump

Illustration: Rebecca Zisser/Axios

For decades, U.S. tech startups have been the beating heart of Silicon Valley. But almost unnoticed by economists, they are now in the same funk dogging some other sectors of the American economy.

Why it matters: In the booming 1980s and 1990s, much of U.S. job and productivity growth was the handiwork of a few young startups and their hit innovations. But the decline, which began in 2005, has stripped the economy of one of its most vibrant engines of wage and productivity growth, says John Haltiwanger, an economist at the University of Maryland.