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Definition: New Economy

Coined in the late 1990s, the New Economy referred to the impact of the Internet on the economy. It stated that traditional measures of value were no longer valid because technology was changing the world so quickly and dramatically.

The New Economy implied that any company not embracing the Internet in a big way was doomed to fail, and its mantra was "gain market share at all cost." After the dot-com failures began in 2000, the term lost much of its luster. Needless to say, Internet-based companies have flourished ever since. See digital economy and economies.