... recruiting large enterprises with tax breaks, financial incentives, and other induce-ments. Instead, they are relying on building businesses from the groundup and supporting the growth of existing ... dropping into a smaller size class.Also, new small businesses are born, increasing the share of jobs in theECONOMIC REVIEW • SECOND QUARTER 2007 79Most gross and net new jobs at small businesses ... convincing evidenceto suggest that small businesses have an edge over larger businesses in innovation. More research is needed to properly evaluate the case for a small business strategy, and, indeed,...