This Report goes forward from the Knowledge-Based Economy (KBE) report of 2000 to examine what structural policies underpin a “knowledge-based economy”. More importantly, it goes one step beyond the individual members of APEC by considering what might be the implications for the forum as a whole of the potential divergence of productivity and economic growth that comes with differential paces of structural reform among the APEC membership.

• Executive Summary
• The Fundamentals: Definition and Policy Underpinnings of the New Economy
• The Evidence: Benefits and Challenges of the New Economy
• Case Studies of the New Economy in APEC
• Implications of New Economy Divergence: Digital Divide
• Analytical Conclusions
• Appendices