innovation. In economic terms what is new is a new product. The new IT product brought about by the new technology means two … of productivity, to a larger production potential and to a higher growth rate. The new economy has implications for …

into consideration. The relative contribution of consumption, investment and net exports to economic growth are resized …

capital (investment network). For each network, we document a declining fraction of production by goods sectors and a rising … investment production are substitutes, rather than strong complements as suggested by existing work. Hence, resources … endogenously reallocate toward the fastest growing producers of investment. Growth accounting exercises demonstrate that investment …