New Economy

The New Economy is a global business shift from industrial and manufacturing-based commerce to service and asset-based industries. Much of the New Economy has been fueled by exponential technological advancements and growth. It has been further accelerated by globalization and a worldwide convergence of consumption habits and tastes.

The New Economy is a global business shift from industrial and manufacturing-based commerce to service and asset-based industries. Much of the New Economy has been fueled by exponential technological advancements and growth. It has been further accelerated by globalization and a worldwide convergence of consumption habits and tastes.

At one point, in the late 90s, many proponents of the New Economy believed that it would mean a fundamental change in economic models which would ensure permanent growth and immunity from any recessions or economic troubles. Some even believed that technology would take over to the degree that newspapers and magazines would become obsolete.

When the dot-com bubble burst in 2000, these theories of economic invincibility were proven wrong. While ideas of the New Economy have been somewhat relegated to the pre dot-com burst, some economists still use the term to denote the current state of economic progress and how it relates to technology and globalization in general.

The concept of the New Economy emphasizes a focus on brand names, intellectual property, specialization in a firm’s strongest area, and extensive outsourcing of jobs and support services. Also part of the New Economy model is a heavy reliance on technology for communication, supply chain management, and overall business planning and strategy.