In the end, new competition will determine how the boundaries of firms and industries are changed. One activity being outsourced is technology development. In large companies, burdensome review processes can stifle innovation, in part because innovation undermines existing vested interests within the firm. Through stock options, the market has provided tremendous incentives to successful innovators. Another facilitator of innovation in the U.S. has been access to talent.
Higher education provides a flow of new-trained graduates.
Immigration has also been important. The new economy is dramatically affecting the old economy. Farmers can use the Internet to check meteorology and soil forecasts based on satellite information. Nurses carry Palm Pilots that contain patient information from all parts of the hospital. Truckers get street directions from the GPS system and are tracked by their companies.