A new business model? The capital market and the new economy

Hengyi Feng, Julie Froud, Sukhdev Johal, Colin Haslam, Karel Williams

Research output: Contribution to journalArticlepeer-review


This paper uses the concepts of business model and financial ecosystem to analyse the relation between the US capital market and corporate business. Under a capital market double standard, from 1995 to 2000, new companies with digital prospects could recover their costs from the capital market; but, after the tech stock crash in 2000, all companies were required to generate profits from the product market. This encourages a blurring of old and new firm identities, because sectoral power is increasingly necessary to secure cost recovery. But this does not imply any return to business as usual when the financial ecosystem for new technology survives the crash and large-scale venture capital investment continues. From this point of view, the new economy illustrated, concretely, the determining role of finance in the broader processes of financialization.
Original languageEnglish
Pages (from-to)467-503
Number of pages36
JournalEconomy and Society
Issue number4
Publication statusPublished - Nov 2001


  • Business model
  • Capital market
  • Digital technologies
  • Financial ecosystem
  • Financialization
  • New economy


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