new economy/new economy company

new economy/new economy company

a term used to describe that part of the ECONOMY (and companies operating therein) which is based on new, innovative technologies and delivery systems, utilizing COMPUTERS and the INTERNET. The new economy embraces activities such as telecommunications (e.g. mobile phones, digital television, e-mail), computer software (e.g. Microsoft's ‘Windows’ system), biotechnology and genetic engineering to produce new drugs and ‘genetically-modified’ (GM) foodstuffs, and the ‘dot.com’ companies providing Internet access and facilities. By contrast, the ‘old economy’ consists of older established companies, producing, for example, beer, cigarettes and food. Of course, at the margin the distinction between the two is somewhat arbitrary since ‘old economy’ companies have embraced the new technologies to upgrade their manufacturing systems and widen their marketing reach. For example, car companies use robots on automated, computerized production lines to produce their models, while traditional service areas such as banking and insurance have developed telephone and internet banking and insurance facilities to augment their branch networks.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

new economy/new economy company

a term used to describe that part of the ECONOMY (and companies operating therein) that is based on new, innovative technologies and delivery systems, utilizing COMPUTERS and the INTERNET. The new economy embraces activities such as telecommunications (e.g. mobile phones, digital television, e-mail), computer software (e.g. Microsoft's ‘Windows’ system), biotechnology and genetic engineering to produce new drugs and ‘genetically modified’ (GM) foodstuffs, and the ‘dot.com’ companies providing Internet access and facilities. By contrast, the ‘old economy’ consists of older established companies producing, for example, beer, cigarettes and food.

Of course, at the margin the distinction between the two is somewhat arbitrary since ‘old economy’ companies have embraced the new technologies in order to upgrade their manufacturing systems and widen their marketing reach. For example, car companies use robots on automated, computerized production lines to produce their models, while traditional services areas such as banking and insurance have developed telephone and Internet banking and insurance facilities to augment their branch networks. See NEW AND OLD PARADIGM ECONOMICS.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005