PUBLIC POLICY, KNOWLEDGE CAPITALISM AND BUSINESS IN THE UNITED STATES: THE DECLINE OF THE CLASSIC CORPORATION

Abstract

The article analyzes the transformation of the U.S. business system from the last quarter of the twentieth century to the first quarter of the twenty-first century. It studies the boundary conditions for the evolution of U.S. firms as part of the formation of knowledge capitalism, emphasizing the public policies shaped during the period that directly impacted firms. Specifically, it studies the emergence of limited liability companies (LLCs) in the context of the institutional changes generated by public policies. It empirically determines that this business form has become widely dominant. This finding contributes to Gerald Davis' thesis of the demise of the classic corporation, with some nuances. It is argued that this change results from a comprehensive transformation of economics, politics, business, and public administration in the transition to knowledge capitalism.