The Developed and developing countries within the context of new economy: Turkey example

Ill ABSTRACT In the late 1990's, the economic developments emerged in the United States have raised controversies over "new economy". It is commonly accepted that the impact of globalization, intensified international competition, technological innovation, human capital and R&D (Research and Development) activities are among the reasons for the emergence of new economy. These issues have become the focus of different writers' attentions and defined from the their point of views. The first part includes the differences between new and old economy, digital transformation, computers, network and Internet. The new circumstances like e- commerce, e-business which are caused by digital transformation and the issues of digital divide are studied. Inventions, innovations and R&D activities are also described. In the second part, network externalities, market structure and pricing concepts are described from the microeconomic viewpoint. The importance of technology and information in economic growth, ICT (Information Communication Technologies) and productivity, new business cycle, inflation and NAIRU (Non Accelerating Inflation Rate of Unemployment), income distribution and new monetary policy concepts are described from the macroeconomic viewpoint. Infrastructure of digital transformation, ICT and Internet use, e-commerce, e- marketplace and digital divide issues are studied in the part related to Turkey. Innovations, inventions, patents, R&D activities and venture capital applications are also described within the framework of technological properties.