4.3 Industrial dynamics: knowledge and network industries

This final subsection introduces two more concepts that develop further our analysis of the dynamics of industrial structure, with particular reference to the ‘new economy’ industries. A dynamic approach to industrial change places considerable emphasis on innovation and learning, seeing firms as actively searching out innovative products and processes and learning how to produce and sell them. Some of the novelty of the new economy is reflected in the concepts used in trying to understand it, which are applied here to a brief analysis of network industries.