BUSINESSWEEK ONLINE : OCTOBER 9, 2000 ISSUE
COVER STORY

How the Tech Cycle Plays Out


	EXPANSION PHASE                  CONTRACTION PHASE

Rapid introduction of new tech- Technological stagnation nology and new business models Easy funding for new Difficult for new competitors and innovative businesses to emerge Strong productivity growth Weak productivity growth Capital investment soars as Technology spending flattens companies try to keep up with out, while overall new technology investment falls Inflation is held down by rising Inflation rebounds as productivity, intense competition productivity growth slows from new companies, and and new startups become falling prices for new technology less common Buoyant stock markets Depressed stock markets


_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _




RELATED ITEMS
The Next Downturn

COVER IMAGE: The Next Downturn

The Outlook for Tech

CHART: Engines of Growth

CHART: Those Punishing Tech Gyrations

Book Adaptation: The Next Downturn

CHART: Venture Capital Has Rocketed...And Swings With the Market

TABLE: How the Tech Cycle Plays Out

CHART: Foreign Money Powers the Investment Boom

CHART: Tech Dominates Capital Spending

Commentary: The Case for Optimism



INTERACT
E-Mail to Business Week Online

 
Copyright 2000-2009, Bloomberg L.P.
Terms of Use   Privacy Notice