Author Archive
FAIRFAX, Va.–(BUSINESS WIRE)–ManTech International Corporation (NASDAQ:MANT – News) (www.mantech.com), a leading provider of innovative technologies and solutions for mission-critical national security programs, announced today that it received a new contract to support the U.S. Department of Agriculture (USDA) Office of the Chief Information Officer (OCIO), Agriculture Security Operations Center (SOC). Under the contract, ManTech will provide 24/7 incident handling and strategic support to help detect and report malicious cyber activities on the agency’s enterprise information infrastructure. The contract, which has an initial period of one year and four one-year extension options, is estimated to be worth up to $10.8 million.
The USDA OCIO is responsible for supervising and coordinating the design, acquisition, maintenance, use and disposal of information technology by USDA agencies and monitoring the performance of USDA’s information technology programs and activities.
“ManTech is extremely pleased to have been selected by the USDA Office of the CIO to provide strategic support in detecting, reporting and responding to cyber threats to the agency’s infrastructure,” said L. William Varner, president and chief operating officer of ManTech’s Mission, Cyber and Technology Solutions. “ManTech’s highly experienced cyber professionals, combined with the company’s strong track record in building and managing security operations centers for government entities make ManTech well suited to help secure our nation’s federal agencies from cyber attacks.”
About ManTech International Corporation
Headquartered in Fairfax, Va., with approximately 9,100 professionals, ManTech is a leading provider of innovative technologies and solutions for mission-critical national security programs for the intelligence community; the departments of Defense, State, Homeland Security and Justice; the space community; the National Oceanic and Atmospheric Administration; and other U.S. federal government customers. ManTech’s expertise includes systems engineering, systems integration, enterprise architecture, cyber security, information assurance, intelligence operations and analysis support, network and critical infrastructure protection, information operations and information warfare support, information technology, communications integration, global logistics and supply chain management, and service-oriented architectures. Additional information on ManTech can be found at www.mantech.com.
Two International Cyber Security Conferences in Nation’s Capital-A First for Canada
Posted by: | CommentsOTTAWA, ONTARIO — (Marketwire) — 08/27/10 — The 13th International Symposium on Recent Advances in Intrusion Detection (RAID) and the International Symposium on Visualization for Cyber Security (VizSec) will be hosted in Canada for the first time, from September 14 to 17, 2010.
Defence Research and Development Canada – Ottawa (DRDC Ottawa) of the Department of National Defence (DND), in partnership with the Communications Research Centre Canada (CRC), of Industry Canada, are pleased to announce these two international cyber security events. These events will provide attendees with the opportunity to hear presentations by, and to network with, leading academic experts and researchers on a variety of topics in the fields of intrusion detection and cyber security. Scientific, industrial and military communities will benefit from first-rate presentations, workshops, panel discussions and a showcase of innovative technology.
“It’s a privilege to bring two such prestigious scientific events to the heart of “silicon valley” in Canada’s capital and to provide industry with an opportunity to showcase their advanced technology in this field,” says Dr. Robert S. Walker, Chief Executive Officer of DRDC and Assistant Deputy Minister (Science and Technology) within the Department of National Defence. “Given the advancing complexity of cyber security threats, we appreciate the opportunity to facilitate the sharing of scientific and technical knowledge in an area of global interest.”
“Building on knowledge exchanged at events such as these will advance the important work of DRDC, CRC, and others so we can respond to the needs of the national security community,” says Dr. Veena Rawat, President, CRC. “From here, new ideas are integrated and collaborations are created, ultimately, leading to innovative solutions.”
DRDC is an agency of the Department of National Defence responding to the scientific and technological needs of the Canadian Forces. The agency is made up of nine centres located across Canada with a corporate office in Ottawa. DRDC has an annual budget of $350 million and employs 1800 people (1200 science workers). With a broad scientific program, DRDC actively collaborates with industry, international allies, academia, other government departments and the national security community.
CRC is the federal government’s primary laboratory for research and development in advanced telecommunications, and a centre of excellence in information and communications technologies. It has core competencies in broadcasting and interactive multimedia, communications networks, photonics, radio fundamentals and wireless. CRC employs 400 staff, including 240 research staff, and has a total annual budget in the range of $50 million.
For more information, visit www.raid2010.org : 
or www.vizsec2010.org : .
McAfee Labs: It’s Time to Be Proactive on Cybersecurity
Posted by: | CommentsMcAfee, Inc. Security Journal Examines Strategies for Shifting From Defense to Offense in Cybersecurity
SANTA CLARA, Calif., Aug 10, 2010 (BUSINESS WIRE) — A new report published by McAfee, Inc.(MFE 31.47, -0.06, -0.19%) stresses the need for the security industry to take a more proactive position against cybercriminals. In light of recent cyberespionage, the breakup of cybercrime rings, and the threats that sophisticated malware such as Stuxnet present to critical infrastructures, McAfee Labs(TM) researchers and industry experts call for a more proactive strategy for fighting cybercrime.
“Cybercriminals prosper because they have very little reason to fear the consequences,” said Jeff Green, senior vice president of McAfee Labs. “As security experts, it’s time to take a hard look at what we do, how we do it, and what our ultimate goals are. The tools and techniques of cybercrime continue to grow in number and sophistication at alarming rates. Every time we release a new statistic about the rise in malware it points to our failure as an industry.”
The report, titled “Security Takes the Offensive,” is based on strategies compiled by international experts and issues a “call to arms” to the security industry. Traditionally, security technology companies and computer users have taken a defensive posture, putting the cyber equivalent of body armor on computers, networks and in the cloud. The report’s authors say it is now time to avoid enemy strikes altogether by taking a more aggressive stance, aligning forces and involving law enforcement.
“As we look at the evolution of risky domains and websites over multiple years, we can’t avoid the conclusion that the risk keeps increasing in both volume and sophistication,” said David Marcus, director of security research and communications for McAfee Labs. “If we want to stop being victims, then the good guys need to advance security efforts as threats evolve.”
– The report details the following methods for building a more offensive security strategy: Use hacker techniques: Data loss is accelerating at an alarming rate, as there were 222 million records lost in 2009 in the United States alone. Organizations should use hacker techniques, such as fuzzing and penetration testing, to find bugs within their own products and address the issues, shutting the door on the bad guys.
– Provide data to help prosecute cybercriminals: A major component for combating spam lies in the hands of ICANN (the Internet Corporation for Assigned Names and Numbers), as it accredits the registrants that sell the domains which cybercriminals use to host malicious sites. Working with the security industry, ICANN should take a stronger stance against cybercrime.
– Share information: Computer users, security professionals and administrators should share intelligence information with their trusted security vendor, and in turn security vendors should cooperate in live metadata sharing. Legislators should take these issues into account when drafting laws within their respective countries.
– Implement “shuns” and “stuns”: Three successful “tried and true” takedowns to date–MoColo, Atrivo and Mega-D–fall into one of two categories: “shuns,” in which the Internet community ostracized the network, and “stuns,” which focused on incapacitating botnets. An offensive security practice should involve the entire security industry while incorporating methods that have proven successful. Shuns and stuns have beaten the odds in the past and industry experts as well as law enforcement should embrace these methods as a common security practice.
– Use tactics that increase risk for cybercriminals: Cybercrime has become an increasingly for-profit endeavor. Like any enterprise business model, the psychology of organized cybercrime follows the three major factors: risk, effort and reward. By using a number of potential tactics affecting each of these factors, the ratio can flip, so that cybercriminals faced actual risk for substantially reduced reward, diminishing cybercrime overall. Some of those tactics include publicly disclosing the names of cybercriminals, increasing the fines against cybercriminals, increasing the shutdowns of affected domains, more effective spam filtering, closing “dropped” email accounts and freezing payment accounts that are suspected of fraud.
– Educate: Security experts should work with governments to provide models to tie together cybercrime-reporting with cybereducation, so users can start to link uninformed behavior to their risk of becoming victims. This includes educating those fighting cybercrime “on the streets” to have the latest in malware techniques, bringing tools to the mass population to help identify risky behavior, pointing users to the right contacts to report crimes, and helping to build education and awareness at the kindergarten level through higher education.
The McAfee Security Journal outlines an offensive strategy that involves a couple of key components: proactive law enforcement and the security community banding together to help takedown the offenders. McAfee(R) Global Threat Intelligence(TM) is a comprehensive solution that scans the entire Internet and effectively uses millions of sensors to gather real-time intelligence from host IP addresses, Internet domains, specific URLs, files, images and e-mail messages. Armed with this information, the team at McAfee Labs works across governments and international law enforcement, and has a ten-year history of building communities of trusted information sharing to help catch criminals. This unified approach turns a reactive security strategy into an offensive security strategy, laying the groundwork for the type of interaction that will help bring down major producers of malware, spam and scareware.
“Creating a framework for these organizations to play a greater role in reporting abuses and enforcing laws (along with a greatly increased budget) is where lawmakers seeking to make an impact on cybercrime should turn their attention,” said Joe Stewart, director of malware research with the SecureWorks Counter Threat Unit, in the report. “This is a long-term effort, and one that will require great political bartering and global treaties before cybercrime could be considered a risky endeavor by those who seek to abuse the Internet for their personal gain.”
Experts in the report are McAfee Labs researchers, as well as renowned security journalist Brian Krebs, Technical and Research Lead for Recurity Labs Felix “FX” Lindner and Joe Stewart. All of our experts agree that the recommendations laid out in the report are preliminary, and this is just the first step that needs to be taken industry-wide.
For a full copy of the McAfee Security Journal, please visithttp://www.mcafee.com/us/research/mcafee_security_journal/index.html.
AT&T Will Provide Internet Protocol Virtual Private Network (VPN) and Managed Security Services Under U.S. General Services Administration Networx Universal Program
OAKTON, Va., July 21 /PRNewswire-FirstCall/ — AT&T Government Solutions* business unit announced it has won a task order worth up to $350 million to provide Managed Security Services and deploy a Virtual Private Network (VPN) for the U.S. Department of Agriculture (USDA) Data Services.
The task order was awarded under the U.S. General Services Administration (GSA) Networx Universal contract vehicle. Under the terms of the task order, AT&T will utilize its transition planning and network management capabilities to complete a Department-wide managed IP network architecture that enables shared services across a new, unified infrastructure. AT&T will provide data services to over 5,000 USDA locations across the country.
The USDA has a geographically dispersed network, encompassing over 29 agencies and offices with a diverse set of objectives. The Cabinet-level agency is charged with serving our nation’s farmers, conserving natural resources, protecting the food supply, and serving millions of constituents who rely on the agency’s services.
“A growing demand to provide information in a secure fashion and on a global scale are key challenges that many federal agencies face today and tomorrow,” said Christopher L. Smith, Chief Information Officer, U.S. Department of Agriculture. “USDA Data Services is not only designed to meet these challenges via the deployment of a corporate data network, but also through close collaboration between USDA and its agencies. USDA will use the Networx program to transform our operations through new technologies so we can provide our customers with more advanced network services while also meeting the needs of our citizens.”
“The migration to a VPN architecture for USDA is not only a significant evolution of their network but an example of how the agency has been able to successfully execute its network vision,” said Jeff Mohan, Executive Director, Networx Program Office, AT&T Government Solutions. “Given our long-standing network engagement with USDA, and AT&T’s expertise in providing cybersecurity solutions to the federal government, AT&T can help the agency achieve the next-generation of its network so it can provide additional capabilities to not only its workforce but the citizens it serves in a highly secure manner.”
The foundation for the AT&T Data Services VPN solution is the state-of-the-art AT&T Multiprotocol Label Switching (MPLS)-enabled network, a fully managed, highly secure, scalable data network, which enables customers to incorporate leading edge applications on the network. This powerful foundation provides the secure, reliable VPN network best suited to support USDA needs for an IP-converged network connecting USDA’s sites nationwide.
As a recognized leader in network security, AT&T will also provide Managed Security services for USDA such as Managed Firewall, Intrusion Detection and Prevention, Managed e-Authentication Service, Vulnerability Scanning, Anti-Virus Management, Incident Response, Secure Managed e-mail, and Managed Tiered Security Services.
“USDA needs an approach to security that not only safeguards their data and other assets, but also identifies and stops cyber threats before they reach their network perimeter,” said Ed Amoroso, Chief Security Officer and Senior Vice President, AT&T Services, Inc. “AT&T’s cloud-based approach, coupled with our industry-leading Managed Security Services, provides USDA with a highly advanced cyber security solution ready to respond to the ever-changing threat environment.”
With the new architecture, the USDA will improve its ability to securely share information between its many nationwide offices and stakeholders, including businesses, state and local government partners, and public citizens.
AT&T, the incumbent data carrier for USDA, has been engaged with the Cabinet-level agency for several years. AT&T has deployed sites for the USDA Universal Telecommunications Network (UTN) VPN under the Federal Telecommunications Service 2001 (FTS2001) Crossover contract.
The USDA task order has a one-year base with six one-year options.
*AT&T products and services are provided or offered by subsidiaries and affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc.
AT&T Announces Stellar Lineup of Judges for Third Annual Big Mobile on Campus Challenge
Posted by: | Comments2010 Panel Includes Mobility Industry Experts, Education Leaders and Previous Winners
AT&T* today announced the lineup of judges for the 2010 AT&T Big Mobile on Campus Challenge(SM), a national higher education contest that invites college students to design the next generation of e-learning mobile applications that demonstrate usability, quality, innovation, utility, and marketability.
This year’s judges were selected for their extensive experience in mobility and education. The judges for the 2010 Challenge are:
-- David Binko - Binko is a Principal and Group Leader for the Harvard
Group, a consulting organization focused on the facilitation of
external advisory groups and experiential learning programs for
prominent high technology enterprises.
-- Y. Joy Ding - Ding is a Co-Founder of LampPost Mobile and Grand Prize
team winner of the 2009 AT&T Big Mobile on Campus Challenge. LampPost
Mobile is dedicated to solutions for higher education. She recently
graduated in 2010 from Harvard University.
-- Chris Hill - Hill is Vice President, Mobility Product Management, AT&T
Business Solutions (ABS). His organization manages the mobility
product development, including machine to machine (M2M), fixed mobile
convergence offers (FMC), small business solutions, and international
managed services.
-- Elizabeth Carlton Hill - Carlton Hill is Vice President of Device
Operations and Product Development at AT&T, overseeing all business
and marketing aspects of mobile device certification, service
integration and quality management.
-- Igor Glubochansky - Glubochansky is Executive Director of Industry
Solutions, Mobility Product Management, AT&T Business Solutions,
responsible for enterprise mobility applications product management
and marketing for commercial verticals.
-- Abhi Ingle - Ingle is Vice President, Mobility Application Sales, AT&T
Operations, Inc. The AT&T Advanced Enterprise Mobility Solutions unit
is designed to focus on the rapidly expanding opportunity to propel
growth and participation in the mobility solutions marketplace.
-- Klara Jelinkova - Jelinkova was recently hired as the Chief
Information Technology Officer for the University of Chicago. Prior to
joining the University of Chicago, she served as the Assistant VP of
Shared Services and infrastructure at Duke University. She is a member
of the Steering Committee of the Educause Campus Cyber infrastructure
working group.
-- Howard Wright - Wright is Vice President, Global Business Development
at Qualcomm Incorporated, responsible for fostering relationship and
constructing deals between Qualcomm and its partners across wireless,
automotive, and retail industries.
-- Winston Yan - Yan is a Co-Founder of LampPost Mobile and Grand Prize
team winner of the 2009 AT&T Big Mobile on Campus Challenge. He
recently graduated from Harvard University, Class of 2010.
-- Chris Ziegler - Ziegler is the Mobile Editor for respected gadget and
consumer technology website, Engadget. Outside Engadget, he has
authored books and written for print publications.
“Now in its third year, the AT&T Big Mobile on Campus Challenge is established as a key proving ground for mobile educational applications,” said Michael Antieri, President, Advanced Enterprise Mobility Solutions, AT&T Business Solutions. “The caliber of entries in previous years has been extremely high, and we are truly honored to have such an exceptional panel of judges assembled for this year’s competition.”
This year’s contest opened on March 1, 2010, and entries will be accepted until September 15, 2010. AT&T will choose five finalists and then select three overall winners. The top five finalists’ schools will receive complimentary memberships to AT&T’s Developer Program.
The Grand Prize Winner(s) of the contest will be presented with a $10,000 scholarship either as an individual or team, receive a mobile device of choice per entrant and be invited to participate on the 2011 AT&T Big Mobile on Campus Challenge Judging Committee. Additionally, the two runners-up will receive a $5,000 scholarship, given to the individual or divided among the team members, as well as a mobile device of choice for each entrant.
No purchase necessary. Contest rules, application forms, and further details on the 2010 AT&T Big Mobile on Campus Challenge can be found at http://bigmobileoncampus.wireless.att.com/.
*AT&T products and services are provided or offered by subsidiaries and affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc.
Black Hat USA Breaks All Records to Deliver Largest Event Ever
Posted by: | CommentsBlack Hat USA, the world’s leading family of information security events produced by UBM TechWeb, today announces the largest event in the history of Black Hat. Organizers report an increase of 25 percent in sponsorships and a record 35 percent increase in conference attendance over 2009. These record numbers confirm Black Hat is the industry’s largest and most important security event of its kind. New programs like Black Hat Arsenal and Black Hat Uplink, in addition to an event launch in Abu Dhabi later this year, demonstrate continued innovation and tremendous momentum. For more information visit http://www.blackhat.com/.
“Our unprecedented growth is evidence that the industry looks to Black Hat as the most significant must-attend security event in our industry,” said Jeff Moss, founder of Black Hat. “Security researchers from all over the world come to Black Hat to identify security threats and work collectively to create solutions. The Black Hat community is one of the greatest assets we have for defending the safety and security of the Internet.”
In its 13th year, Black Hat will gather public and private sector security professionals and underground hackers from around the world together with all the critical corporate players in the cyber security space, setting the stage for the largest event in its history. Attendance numbers shatter all previous records, reflecting a 35 percent increase in attendance over last year. The 2010 event proudly features over 200 speakers discussing their latest research around fundamental security topics such as infrastructure, reverse-engineering, malware + fingerprinting, and exploitation; to newer trending topics in technology like cloud/virtualization and cyber war & peace. With over 70 training courses from top industry experts, the event offers an unprecedented 11 tracks for attendees and welcomes 55 premier sponsors, an increase of 25 percent from last year.
First-time programs launching this year include Black Hat Arsenal and Black Hat Uplink. At Black Hat Arsenal, security researchers and professionals will deliver 32 security tool demonstrations from the main stage, while Black Hat Uplink will give audiences the opportunity to stream content from the live event on-demand. Including tracks, briefings, and keynotes, Black Hat Uplink provides access to over 20 possible sessions and will be on demand for reference to each user post-conference. For more information about Black Hat Arsenal visit http://www.blackhat.com/html/bh-us-10/bh-us-10-specialevents_arsenal.html; Black Hat Uplink visit https://www.blackhat.com/html/uplink/bh-us-10-uplink.html.
Later this year, Black Hat Abu Dhabi launches November 8-11, 2010 at Emirates Palace with the partnership of the UAE Telecommunications Regulatory Authority (TRA) and Khalifa University of Science, Technology and Research (KUSTAR) supported by The UAE Computer Emergency Response Team (aeCERT). A special briefing about the event will be held at Black Hat USA July 27 in Las Vegas. Presented by Mr. Meshal Binhussain (Head of aeCERT Operations), and Kent Daniels, Regional Director UBM, the Black Hat Abu Dhabi briefing will examine the security industry in the wider Middle East region, and present details on Black Hat Abu Dhabi.
Patriot Data Solutions Group Signs Reseller Agreement With SRA International
Posted by: | CommentsPatriot Scientific Corporation (OTC:PTSC) (BULLETIN BOARD: PTSC) today reported that its wholly owned subsidiary, Patriot Data Solutions Group (PDSG), has entered into a strategic partnership agreement with SRA International, Inc. Under the agreement SRA will become a reseller of PDSG’s Crossflo DataExchange® (CDX) line of products. SRA serves government organizations in the national security, civil government and global health markets with technical expertise in areas including cyber security; enterprise resource planning; IT systems; strategic management consulting; systems engineering; and wireless integration.
“SRA has demonstrated a strong history of deploying solutions, such as its law enforcement product GangNet, that capitalize on information sharing,” said Patriot Scientific interim CEO Cliff Flowers. “We are pleased that SRA has identified PDSG and its CDX product line as an important enhancement to initiatives that promote data sharing. We are excited about this partnership and look forward to working together on opportunities that complement existing SRA deployments as well as future initiatives.”
PDSG’s CDX Enterprise Solution is both an enterprise-class middleware platform and an end-to-end Justice systems integration solution. The solution includes CDX ExchangeBuilder, which enables agencies to visually model information exchanges and develop NIEM-conformant Information Exchange Package Documentation (IEPD). It includes a complete, secure, and robust data exchange platform and the CDX Enterprise Portal that represents a secure community interface for all identified Justice users. Built upon the Global Federated Identity and Privilege Management (GFIPM) framework, the CDX Portal allows Criminal Justice Information Services (CJIS) agencies to pass local security credentials and roles into the enterprise. The portal also includes CDX FindIt!, a best-of-breed data discovery application that allows users to search, sort and discover records enterprise-wide.
“In this era of an ever-expanding information glut, timely information sharing is critical to improving operational effectiveness both within an enterprise and across organizations,” said SRA Senior Vice President of Offerings and Products Pat Burke. “The need to enhance data quality through the use of structured engineering processes and tools like PDSG’s CDX is key to architecting and executing the mapping, extraction, transformation, and loading routines associated with data exchanges. We look forward to leveraging PDSG’s CDX to make our solutions more powerful, and easier to scale and maintain as needed,” said Burke.
Tune in and Watch William Shatner’s LIVE Webcast on Myouterspace.com, July 23rd at 7:30 PST
STUDIO CITY, Calif., July 21 /PRNewswire/ — Myouterspace.com, a new Social Network created for those passionate about Science Fiction, will officially launch with William Shatner who will soar over the San Diego Harbor in a helicopter, landing onto deck of the USS Midway Aircraft Carrier at Comic Con. William Shatner’s Myouterspace.com launch will be held at the Tweet House on the USS Midway from 7:30pm-9:30pm PST on Friday, July 23, 2010.
Comic-Con is a natural magnet for the fans, as the world will be watching Mr. Shatner interview other celebrity guests and industry professionals. Shatner fans from around the world can follow the link to our live transmission page on Myouterspace.com and follow a live Twitter chat.
“I am excited about the possibilities that are happening at Comic Con,” said Mr. Shatner, host of Myouterspace.com. “The brand new platform for creativity in film, in gaming, and in animation is now coming alive on Myouterspace.com. With Tweet House on the USS Midway, and a great team of partners, can you get more with it?”
“The team at Myouterspace has worked extremely hard towards this exciting event,” said Sammy Oriti, Co-Founder of Myouterspace.com. “Bill is an innovator; a truly incredible visionary and it will a great moment when he lands his helicopter on the flight deck. All I can say is that I have the coolest job in the world…I work with William Shatner in a Sci-Fi virtual universe!”
Myouterspace.com is dedicated to providing fans with amazing content, while connecting talented users with creative opportunities in music, graphic design, entertainment, acting, film production, and writing. Myouterspace.com generates Sci-Fi projects for film, television and the web by allowing registered users to participate alongside industry professionals and connect with other users in the business. William Shatner, host of Myouterspace.com, engages with the online community by creating video messages to fans, overseeing feature productions, providing his professional critique to users, and promoting Myouterspace.com on Twitter, Facebook, and major media outlets.
With the support of William Shatner and an innovative twist on social media, Myouterspace.com is poised to be a presence in the Sci-Fi community.
Sponsorship/advertising inquiries; sales@adplayerz.com, or 800-557-4165, Ext. 202. Visit www.myouterspace.com and www.adplayerz.com.
U.S. Job Growth Driven Entirely by Startups, According to Kauffman Foundation Study
Posted by: | CommentsNew Firms Add an Average of 3 Million Jobs in Their First Year, While Older Companies Lose 1 Million Jobs Annually
KANSAS CITY, MO–(Marketwire – July 7, 2010) – When it comes to U.S. job growth, startup companies aren’t everything. They’re the only thing.
It’s well understood that existing companies of all sizes constantly create — and destroy — jobs. Conventional wisdom, then, might suppose that annual net job gain is positive at these companies. A study released today by the Ewing Marion Kauffman Foundation, however, shows that this rarely is the case. In fact, net job growth occurs in the U.S. economy only through startup firms.
The new study, The Importance of Startups in Job Creation and Job Destruction, bases its findings on the Business Dynamics Statistics, a U.S. government dataset compiled by the U.S. Census Bureau. The BDS series tracks the annual number of new businesses (startups and new locations) from 1977 to 2005, and defines startups as firms younger than one year old.
The study reveals that, both on average and for all but seven years between 1977 and 2005, existing firms are net job destroyers, losing 1 million jobs net combined per year. By contrast, in their first year, new firms add an average of 3 million jobs.
Further, the study shows, job growth patterns at both startups and existing firms are pro-cyclical, although existing firms have much more cyclical variance. Most notably, during recessionary years, job creation at startups remains stable, while net job losses at existing firms are highly sensitive to the business cycle.
“These findings imply that America should be thinking differently about the standard employment policy paradigm,” said Robert E. Litan, vice president of Research and Policy at the Kauffman Foundation. “Policymakers tend to focus on changes in the national or state unemployment rate, or on layoffs by existing companies, when, in fact, policy has little effect on net employment growth. Instead, job growth best would be influenced by focusing greater attention on policy that supports startup firms.”
Because startups that develop organically are almost solely the drivers of job growth, job-creation policies aimed at luring larger, established employers will inevitably fail, said the study’s author, Tim Kane, Kauffman Foundation senior fellow in Research and Policy. Such city and state policies are doomed not only because they are zero-sum, but because they are based in unrealistic employment growth models.
And it’s not just net job creation that startups dominate. While older firms lose more jobs than they create, those gross flows decline as firms age. On average, one-year-old firms create nearly one million jobs, while ten-year-old firms generate 300,000. The notion that firms bulk up as they age is, in the aggregate, not supported by data.
About the Kauffman Foundation
The Ewing Marion Kauffman Foundation is a private nonpartisan foundation that works to harness the power of entrepreneurship and innovation to grow economies and improve human welfare. Through its research and other initiatives, the Kauffman Foundation aims to open young people’s eyes to the possibility of entrepreneurship, promote entrepreneurship education, raise awareness of entrepreneurship-friendly policies, and find alternative pathways for the commercialization of new knowledge and technologies. It also works to prepare students to be innovators, entrepreneurs and skilled workers in the 21st century economy through initiatives designed to improve learning in math, engineering, science and technology. Founded by late entrepreneur and philanthropist Ewing Marion Kauffman, the Foundation is based in Kansas City, Mo. and has approximately $2 billion in assets. More information, visitwww.kauffman.org, and follow the Foundation on www.twitter.com/kauffmanfdn andwww.facebook.com/kauffmanfdn.
