Remember during the dot-com bubble of the late 1990s, when pundits liked to talk about the “new economy”? Riding the wave of excitement, the information technology sector grew to well over 30% of the S&P 500, from under 10% less than a decade earlier. The mania ended as companies like Pets.com disappeared while others, such as Cisco and Yahoo!, experienced traumatic share-price declines. It may sound negative to rehash those times, but here’s the thing: The experts weren’t entirely wrong.

While the mania of the late ’90s got out of hand, the basic premise of the new economy has continued to play out. We are indeed transitioning from an industrial, manufacturing-based economy into one characterized more by services and information-based commerce. This evolution has opened new markets and new opportunities within industries that barely existed a few decades ago. Apple has grown into the largest company in the world by making the iPhone, Electronic Artspublishes video games that consume countless hours of leisure time, and Facebook gives you a way to connect with friends new and old. These businesses all grew to be the giants they are by creating new demand and making their industries larger.