Remote Work Fuels Startup Boom: An Unexpected Pandemic Side Effect?

New research reveals companies with higher remote work rates during the COVID-19 pandemic saw a significant increase in employee-founded startups. Analyzing IP address and LinkedIn data, researchers found that at least 11.6% of the post-pandemic surge in new firm entries can be attributed to remote workers launching their own businesses. While some companies may experience losses due to employee departures, policymakers view this as a positive spillover effect, boosting job creation and innovation. However, the recent scaling back of remote work policies by major tech companies sparks debate over corporate motivations and the impact of remote work on productivity.