The ‘winner take most’ economy is widening the success gap between companies

Rising income inequality isn’t just separating rich and poor people. There’s also a widening gap between successful and unsuccessful companies, Nicholas Bloom writes for Harvard Business Review, citing research in the UK, the US, Germany, and Sweden. Companies such as Google are sweeping in the most talented employees with lavish salaries and benefits, and the top firms also are scoring far greater gains in productivity, he writes. This is a result of the rapid scaling that can be achieved with technology and automation – and the division between companies is worsening the stratification seen in individual incomes, Bloom argues.

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