ABSTRACT
The New Economy is based fundamentally on three major features. The first concerns productivity. Productivity is derived from the application of knowledge and from the practice of innovation. The second essential feature of the New Economy is connected to the fact that competitiveness operates in a global environment. Thirdly performance in the New Economy is dependent upon a new organizational form, which is networking. Networking is the equivalent for the information age in the same sense as the large corporation, the large factory, the mass-standardized production process, the assembly-line production and distribution process were for the industrial age. Firms are valued at what the financial market states their value as. The value of currencies is determined by this global financial market. The technology of transaction is important first, because it lowers transaction costs considerably – by about 50%. Cities are also being key in the development of technological markets and in innovative uses of new technologies.
