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Ingredients for The New Economy: How Much Does Finance Matter?

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Author Info

  • Bugamelli, M.

    (Banca D'Italia)

  • Pagano, P.

    (Banca D'Italia)

  • Paterno, F.

    (Banca D'Italia)

  • Pozzolo, A.F.

    (Banca D'Italia)

  • Rossi, S.

    (Banca D'Italia)

  • Schivardi, F.

    (Banca D'Italia)

Abstract

Both macro and (still scarce) micro evidence support the idea that a new economy has emerged in the US (hidden but not killed by the adverse cyclical phase), not (yet) in Europe. Some have argued that the inadequacies of Europe's financial system are an important part of the explanation. This paper, after surveying the existing literature on the new productive paradigm and on the related financial aspects, both in the US and in Europe (in Italy in particular), claims that financing the new economy has more to do with traditional firms investing in ICT than with the creation of new firms in ICT-producing sectors. Saying that finance is a major obstacle in Europe to the development of the new economy may be an overstatement, though countries, like Italy, where the average size of firms is small are probably facing specific difficulties

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Bibliographic Info

Paper provided by United Nations University, Institute for New Technologies in its series EIFC - Technology and Finance Working Papers with number 31.

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Date of creation: 2003
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Handle: RePEc:dgr:unutaf:eifc03-31

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Web page: http://www.intech.unu.edu

Related research

Keywords: growth accounting; information and communication technologies; firm organization; human capital; financing policies;

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Cited by:
  1. Domenico Delli Gatti & Mauro Gallegati, 2004. "Weird Ties? : Growth, Cycles and Firms Dynamics in an Agent Based-Model with Financial Market Imperfections," Computing in Economics and Finance 2004 288, Society for Computational Economics.
  2. Domanski, Dietrich, 2003. "Idiosyncratic Risk in the 1990s: Is It an IT Story?," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  3. Roberta Zizza, 2002. "Forecasting the industrial production index for the euro area through forecasts for the main countries," Temi di discussione (Economic working papers) 441, Bank of Italy, Economic Research and International Relations Area.
  4. Chiara Oldani, 2005. "L'impatto della New Economy sull'attività bancaria italiana: un'analisi qualitativa," Finance 0504001, EconWPA.

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