Brave new world: How the “new economy” could change the face of economic base analysis

The expansion of computer and information technology firms combined with the simultaneous decline in traditional manufacturing firms in the 1990s argues for a re‐examination of economic base models in light of changing basic sectors within the economy. This paper reviews the literature and employs an in‐depth survey to describe the differences in the pattern of employment for traditional manufacturing firms and the “new economy” firms in Larimer County, Colorado, USA. This study indicates that traditional economic base analysis is not easily applied to communities with “new economy” firms and maintains that a more inclusive and comprehensive survey method remains the best way to adequately capture the essential makeup of a region's economic base.