Embedding the 'new economy' in Europe : a study in the institutional specificities of knowledge-based growth

Aspirations for a 'new economy' currently feature prominently in the economic policy debate within the EU. So pronounced is elite interest in the 'new economy' that the issue of knowledge-based growth dominated the Special European Council organized for Lisbon in May 2000. However, the Presidential Conclusions to that Council failed to address the question of whether the European economy is institutionally compatible with knowledge-based growth. The 'new economy' is currently most developed within the United States, and the institutional specificities of the American high-tech sector suggest that it may be impossible simply to import the 'new economy' into Europe. The EU may lack both the labour market and the capital market conditions necessary for successfully embedding the 'new economy' in Europe