1. Innovative businesses replace antiquated businesses with the advancement in technology.

Why? Because innovative businesses create optimism and capital is raised for new projects, technology, machinery, etc. People soon realize that this change is going to happen and they 1. gain the necessary skills to become a part of the labor pool that understands how to use the new technology, 2. invest what they can in the new technology or 3. do both. These activities create optimism and it builds until the expansion of the economy and the use of the new technology are fully realized...then the contraction begins.

Just a side note...antiquated businesses that realize the change is occurring will create new business units to absorb and adopt the new innovative technology so that they can continue to compete. This often creates growing pains and only the most adaptive organizations will survive.