Table: How This New Economy Downturn Is Different

INVESTMENT-LED

Fueled by easy capital and the promise of big productivity gains, companies went on a capital-spending spree in the late 1990s. But the boom left many saddled with overcapacity and slim profits.

TECH-DOMINATED

High-tech companies reaped much of the benefits of the investment boom and were Wall Street darlings. Now that the bubble has burst, they must retrench.

STOCK MARKET-DRIVEN

With nearly half of American households owning shares, soaring stock prices fueled the New Economy wealth effect. Now, as stocks crash, investors could cut spending.

VC-DEPENDENT

The boom triggered an explosion in venture-capital financing and a burst of innovation. But with share prices plunging, scarcer venture capital could drain the New Economy's entrepreneurial wellspring.

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