Although a new economy begins during the innovation period, it doesn't start to have an impact on the economy until the growth boom. So, from an observational standpoint, new economies begin with the growth boom period. Hence we hear much about the Information economy today during the growth boom, and not 20 years ago when the basic innovations were being made. New economies are born and develop during periods of higher inflation and low real wage growth. These conditions are favorable to the rapid growth of new businesses as management has considerable pricing power as well as well-controlled costs.
Government policies tend to be capital-friendly.
These conditions are favorable for the large amount of investment required to launch the new economy. As the new economy grows, it provides alternate avenues for consumer spending that did not exist in the old economy. These new avenues compete with the old, resulting in an effective attentuation of demand for the old economies goods and services even during economic expansions. Old economy businesses are forced to compete on price, resulting in downward pressure on prices. Inflation starts to fall.