"The concept of the "new economy" has been rapidly embraced by politicians, as it seems to offer a way out of the traditional trade-off between unemployment and wage inflation. Still, empirical evidence regarding the microeconomic mechanisms of the "new economy" is scarce.

Knowledge Capital and the "New Economy": Firm Size, Performance and Network Production intends to narrow this gap by empirically analyzing the composition of knowledge capital and how knowledge capital is distributed across firms of different size. Moreover, the impact of knowledge capital on firms' profitability and international competitiveness is also examined.

Finally, we compare cluster dynamics and the institutional setup in Europe and the U.S., with the purpose of identifying regulations that seem to hinder a conducive environment for expanding and dynamic European clusters."--BOOK JACKET.