Technological response to economic disruption: The role of new technologies in mitigating exogenous economic shocks

The three essays in this dissertation deal with the role of technology in mitigating economic disruption. Much research has been done on the disruptive effects of technology; in contrast, these essays look at how technology can be used to reduce the effects of exogenous disruptions. Each essay looks at the issue at a different level; the first at the firm level, the second at the industry level and the final essay at the level of the national economy.; The first essay examines the options and possible strategies for firms faced with increased instability in their electricity supply, as recently occurred in California. This paper develops response strategies for companies affected by an electrical crisis. These responses fall into three categories: Lead, Follow, or Get Out of the State. The technologies available to companies choosing to lead are reviewed, along with constraints to their adoption. From these strategies, it can be shown that areas with unstable electrical markets can expect a loss of firms to locales with less risk and uncertainty, unless governments adopt policies promoting distributed generation.; The second essay projects the economic impacts of the adoption of high-temperature superconductor (FITS) technologies in electric generation, transmission, and distribution systems. Three technologies utilizing high-temperature superconductors are analyzed for their potential impact on the electrical utility industry. Distributed superconducting magnetic energy storage systems (D-SMES), superconducting cable, and HTS generators are each described along with their possible uses in the electrical utility industry. The economic impact of these technologies is then projected, along with a comparison between them and conventional technologies.; The third essay deals with the role of technology in mitigating the economic effects of the reaction to terrorist attacks. In the wake of the terrorist attacks of September 11, 2001, public and private investments are being diverted from productive to protective uses. This essay examines the possible economic effects of such a reallocation of resources, and shows how this shift in investment is likely to dampen long-term economic growth. Whether one uses Solow growth model derivatives or Austrian school methods, the diversion of resources has negative implications for economic growth.