APPENDIX AThe Fall and Rise of Small-Scale Competetiveness
One way to get a handle on the “optimal” scale of any business is to analyze data in the North American Industry Classification System (NAICS). For each of its thousand-plus industry categories, NAICS presents aggregate data on the location, branching, employment, and payroll of member firms. The U.S. Bureau of the Census collects these data every five years, most recently in 2002. There are twenty broad categories with two digits, starting with 10 (“Agriculture, Forestry, Fishing, and Hunting”) and going up to 30 (“Unclassified”). Each of these two-digit categories breaks out into subcategories, with each additional digit representing another level of detail. The calibration of ...
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