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The expansion of computer and information technology firms combined with the simultaneous decline in traditional manufacturing firms in the 1990s argues for a re‐examination of economic base models in light of changing basic sectors within the economy. This paper reviews the literature and employs an in‐depth survey to describe the differences in the pattern of employment for traditional manufacturing firms and the “new economy” firms in Larimer County, Colorado, USA. This study indicates that traditional economic base analysis is not easily applied to communities with “new economy” firms and maintains that a more inclusive and comprehensive survey method remains the best way to adequately capture the essential makeup of a region's economic base.

Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some legal aspects concerning MNEs, cyberspace and e‐commerce as the means of expression of the digital economy. The whole effort of the author is focused on the examination of various aspects of MNEs and their impact upon globalisation and vice versa and how and if we are moving towards a global digital economy.

In their well-known contribution to the “varieties of capitalism” debate, Peter Hall and David Soskice (2001, Ch. 1) highlight the distinction between a “coordinated market economy” as exemplified by Germany and a “liberal market economy” as exemplified by the United States. Under the heading, “Liberal Market Economies: The American Case”, Hall and Soskice (2001, p. 27), argue:Liberal market economies can secure levels of overall economic performance as high as those of coordinated market economies, but they do so quite differently. In LMEs, firms rely more heavily on market relations to resolve the coordination problems that firms in CMEs address more often via forms of non-market coordination that entail collaboration and strategic interaction. In each of the major spheres of firm endeavor, competitive markets are more robust and there is less institutional support for non-market forms of coordination.

Purpose – The purpose of this chapter is to advance understanding of regional industry or innovation clusters and the opportunities that the cluster framework provides policymakers for delivering economic impact, clarifying economic priorities, and coordinating disparate programmatic efforts, and to articulate some basic principles for formulating cluster strategies.

Methodology/approach – As the cluster concept enters its third decade and the body of related literature reaches a new level of maturity a consensus has emerged among academics and policy thinkers on the economic benefits of clusters. In fact, clusters have emerged as major focus of economic and policy discussion just now – in what the authors dub a “cluster moment” – by dint of their demonstrated practical impact, their value in paradigm discussions, and their potential utility in policy reform. The chapter reviews the benefits of clusters and traces their ascendance – and re-emergence post-recession – among policy thinkers.

Findings – New research confirms that strong clusters tend to deliver positive benefits to workers, firms, and regions. As a paradigm, they reflect the nature of the real economy and as a matter of policymaking, clusters provide a framework for rethinking and refocusing economic policy. In pursuing cluster-based economic development strategies, policy leaders should not try to create clusters; use data to target interventions, drive design, and track performance; focus initiatives on addressing discrete gaps in performance or binding constraints on cluster growth; maximize impact by leveraging pre-existing cluster-relevant programs; align efforts vertically as well as horizontally; and let the private sector lead. All three tiers of the nation's federalist system have distinct and complementary roles to play in advancing the cluster paradigm.

Research limitations/implications (if applicable) – The paper includes no new/original data.

Practical implications (if applicable) – Given that clusters have emerged as a major focus of economics and policy, this chapter lays out a core set of general principles for pursuing cluster-based economic development strategies – and for avoiding common pitfalls – to which policymakers can adhere.

Originality/value of paper – The chapter advances cluster thinking and cluster strategies as a paradigm with the potential to accelerate regional economic growth and assist with the nation's needed restructuring and rebalancing toward a more productive post-recession economy.

The purpose of this paper is to provide a selective bibliography and examine the potential of the digital technologies, using an inter‐disciplinary literature survey that will contribute to academic and practical knowledge with regard to the understanding of the emerging forms of doing business and competition together with their developmental implications.

The paper examines a survey of a collection of papers that have been published before and after the new economy bubble. These writings then are classified under two main headings: the views of the (new) digital economy proponents and the sceptics. These two opposing approaches are compared and contrasted through the use of five sub‐sections: conceptualisation, driving force, spatial/developmental implications, industrial impacts of the digital economy, epistemological/methodological foundations.

The paper finds that claims about the world economy entering into a new phase of a virtuous capitalism or a new international division of labour are over‐exaggerated. A more balanced approach should take into consideration both the dynamics of change and continuity without underestimating the future potential of digital technologies.

This paper offers a critical assessment of the digital economy, based on an inter‐disciplinary literature survey that brings together pieces of work that have previously been analysed largely in a separate manner.

This paper aims to examine the relation between executive compensation, firm size and firm performance on a panel of the so‐called “new economy” firms in the USA over the period 1996‐2002.

The authors use two measures of performance, total shareholder return and return on assets, and concentrate on total CEO compensation, which includes stock option compensation, as equity‐based compensation practices have been prevalent in new economy firms. The estimation process uses both the feasible generalized least squares method of Parks and Kmenta and the panel corrected standard error method of Beck and Katz. These methodologies investigate error structures that do not conform to the classical ordinary least squares assumptions.

The econometric results indicate that estimates on firm size are robust to alternative specifications of the error structures. There is evidence however that the effect of firm size on CEO compensation is more significant after the stock market crash of 2000. The opposite holds true for the estimates on firm performance. In addition, estimates on firm performance are more sensitive to the estimation method and the specification of the error structures.

The research presented in this paper is a first step in the direction of understanding the pay to performance relation in the “new economy” industries in the USA. Additional research is warranted, which should extend both the time series and the cross section aspects of the data.

The paper fills an important gap in the existing literature by providing rigorous econometric evidence on the pay to performance relation in the so‐called “new economy” industries. The evidence provided in this paper is relevant as it complements the findings in the literature on executive compensation in the so‐called “old economy” industries, which typically make up the samples of most previous studies.

Outlines the rapid growth of “new economy” companies in Australia and compares their levels of earnings management with “old economy” firms, using data on all Australian listed companies. Reviews the relevant research, explains the methodology and presents the results. Shows that the old economy firms do engage in significant earnings management which is positively associated with leverage and free cash flow levels but, surprisingly, that this is far less evident in the new economic sector. Considers consistency with other research, the underlying reasons for the findings (including regulatory constraints) and opportunities for further research.

This paper aims to unveil the importance of knowledge management on a firm’s strategic emergency response during the great negative shock from global public health threats. Through analyzing how representative firms in China’s new economy industries dealt with the COVID-19 pandemic before, during and after the crisis, the significant problems confronted by these firms are pointed out, and the important role knowledge management capabilities played in solving these problems is proven.

The open data of listed companies regarding the important role knowledge management played in firms’ strategic emergency response during the COVID-19 pandemic are qualitatively analyzed. Based on theoretical sampling, this paper selects representative samples of enterprises and analyzes the positive response measures they took after being hit by this public health event to gain qualitative insight into the importance of knowledge management capabilities in strategic emergency response.

Three aspects of the important role of knowledge management capabilities in a firm’s strategic emergency response during the COVID-19 pandemic are introduced: before the crisis, firms should strengthen the acquisition, sharing and integration of knowledge so that they can intensify their monitoring for uncertain risks; during the crisis, firms should boost the transmission, transformation and diffusion of knowledge to improve emergency cooperation; and after the crisis, companies should reinforce knowledge evaluation, creation and application to enhance “immunity” in similar emergencies.

This paper has important implications for bolstering strategic emergency management practice and knowledge management capability among firms. Future research must focus on the following two aspects for further investigation: the dynamic relationship between firm knowledge management capability and strategic emergency response ability; and the collaboration system between firm knowledge management and strategic emergency response behaviors.

This paper discusses the important role knowledge management capabilities play in firms’ strategic emergency responses based on insights gained from the significant changes that the COVID-19 pandemic caused to representative Chinese new economy firms. By analyzing the three stages of before, during and after the emergency, this paper proposes the exact efforts that new economy companies should make in improving knowledge management capability.

This paper aims to examine the impact on executive compensation (both cash and in total) of regulation, size of sales and number of employees, and nature of the business in terms of new‐economy vs traditional.

This study uses the ExecuComp database as the information source. Regression analysis is used to test hypotheses that focus on firm size in terms of sales, market and accounting returns, and the number of firm employees. The sample consists of 455 US firms from 25 industries, and covers the period 1996‐2002.

Firm size and market‐based return are the most significant explanatory variables in affecting executive compensation. More limited support was found for accounting‐based returns, as was changes in the number of employees.

Findings of this study may be limited by the temporal context. Around the turn of this century may have been an unusual time in America's corporate history. The economic outlook of the late 1990s may be fundamentally different from the one facing firms now or in the future. Consequently, future research will be needed to determine to what extent these results can be generalized to periods of different economic prospects.

This study examines the impact of firms' operational characteristic on Chief Executive Officer (CEO) compensation.

Intellectual capital is the cornerstone of corporate success in the new economy. This article will discuss the meaning, measurement, and management of intellectual capital. It discusses the forces driving the concern about intellectual capital and how one company, Intel Corporation, has been able to manage intellectual capital to achieve market dominance. Unlike Philip Morris, Coca‐Cola or McDonald’s, which earn hundreds of millions year‐in and year‐out from the same product lines, technology companies must constantly reinvent themselves. Intel has managed to do this, but it is the exception.