New vs. "old" economy: insights on competitiveness in the global IT industry

To be competitive in today's "new economy" of the global e-marketplace, an Information Technology (IT) firm cannot go it alone. The successful company must compete within a proactive industry that has focused government support, several established consortia, a selective consumer base, and an innovation strategy that is open to change and has the organizational freedom to collaborate. This paper reviews a currently successful firm, and identifies the elements critical to its competitiveness within the IT industry at the national, industry and firm levels. It establishes a model for understanding these relationships and roles, and it addresses various measurements and theories about national competition, innovation phases, market influences, and the challenges associated with innovation in this Internet economy. (C) 2001 Elsevier Science Ltd. All rights reserved.