Terrorism and Its Impact on Economic Growth and Technological Innovation

Publication Type

Journal Article

Publication Date

2007

Abstract

Recent terrorist acts, in particular the 9-11 attacks in 2001, have created disruptions in the global economy. The short-term impact had been felt in the global tourism, airline industries, as well as the financial markets. While the global economy has recovered and is adjusting to the new global realities, the longer-term impact of heightened security risk across the world can be felt in the form of higher risk premiums in asset markets, as well as a shift of resources towards dealing with terrorism. Just as World War II had accelerated the development of nuclear energy as well as a major contributing factor in the genesis of Silicon Valley, the current war against terrorism will affect both the pace and trajectory of technology trends, as efforts are focused on developing technologies to combat terrorism. In this paper, we review the effects of the current war on terrorism in terms of its impact on the economy, the allocation of resources to R&D, and the trajectory of future R&D.

Discipline

Growth and Development

Research Areas

Applied Microeconomics

Publication

Technological Forecasting and Social Change

Volume

74

Issue

2

First Page

129

Last Page

138

ISSN

0040-1625

Identifier

10.1016/j.techfore.2006.01.005

Additional URL

https://doi.org/10.1016/j.techfore.2006.01.005

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