To be competitive in today's "new economy" of the global e-marketplace, an
Information Technology (IT) firm cannot go it alone. The successful company
must compete within a proactive industry that has focused government suppo
rt, several established consortia, a selective consumer base, and an innova
tion strategy that is open to change and has the organizational freedom to
collaborate. This paper reviews a currently successful firm, and identifies
the elements critical to its competitiveness within the IT industry at the
national, industry and firm levels. It establishes a model for understandi
ng these relationships and roles, and it addresses various measurements and
theories about national competition, innovation phases, market influences,
and the challenges associated with innovation in this Internet economy. (C
) 2001 Elsevier Science Ltd. All rights reserved.