November 1998
Many people talk about the emergence of a so-called New Economy. Few have been able to define it. What's new about it? In The New Economy Index, we provide a new set of economic indicators, gathered from existing public and private data, to illustrate fundamental structural changes in the U.S. economy, to show what those changes mean in the lives of working Americans, and to measure the nation's progress in several key foundation areas for future economic growth.
The indicators in The New Economy Index are divided into three groups. The first group tracks some of the elemental stuctural changes that collectively mark the transition to the New Economy: industrial and occupational change, globalization, the changing nature of competition and economic dynamism, and progress of the information technology (IT) revolution. The second group examines the implications of this transition for working Americans: what is happening to incomes and economic growth, jobs, and employment dynamics. The third group assesses the nation's performance in terms of three main foundations for growth of the New Economy: the pace of transition into a digital economy, investment by business and government in technology and innovation, and progress on the development of education and skills.
Table of Contents
IntroductionThe U.S. economy is undergoing a fundamental transformation at the dawn of the new millenium....
SECTION I
What's New About The New Economy?
Industrial and Occupational Change
New Industries and Jobs
Skills and Wages
Globalization
Trade
Foreign Direct Investment
Dynamism and Competition
Gazelles
Competition
"Coopetition"
The Churn Economy
Product and Service Diversity
Speed
The Information Technology Revolution
Microelectronic Proliferation
Cost of Computing
Cost of Data Transmission
SECTION II
New Economy Outcomes: Impacts on Americans
Growth and Productivity
Earnings Inequality
Unemployment
Displacement
Education and Income
Benefits
Contingent Work
Job Tenure
SECTION III
Foundations for Future Growth
Progress Towards Digital Transformation
E-Commerce
Internet Hosts
Households Online
Businesses Online
Government IT Expenditures
Schools Online
Bandwidth
Investment in Innovation
Venture Capital
Federal R&D
Private R&D
Patents
Capital Investment
Costs of Economic Regulation
Fostering New Economy Skills
Math and Reading Scores
Scientists and Engineers in the Workforce
Science and Engineering Degrees
Worker Education
Corporate Training
Explaining the Productivity Paradox
The Knowledge Economy
Nine Myths About the New Economy
Data Sources
Endnotes
About the Authors
Index Home
| Introduction
SECTION I | SECTION II | SECTION III
Productivity Paradox | Knowledge Economy
Nine Myths | Data Sources | Endnotes | The Authors
 |
Download PDF Version of This Report (830K) (PDF version requires Acrobat Reader) |
The Progressive Policy Institute (PPI)
Technology, Innovation, and New Economy Project
600 Pennsylvania Ave., S.E., Suite 400, Washington DC 20003
Phone: (202) 546-0007
www.ppionline.org
Website design by OnlineWorkshop.