For the last six years we’ve enjoyed enormous gains in technology: the iPod has revolutionized handhelds and cellphones; cloud computing and virtualization have enabled unlimited data/system portability; the Wii changed the way we interact with computer games; and websites that truly embody the promise of Web 2.0 are finally gaining stride and enabling people to network in ways never before possible.

But, with recession coming, belts are tightening. For many companies the first cutbacks will happen in R&D, especially if they already have a satisfied customer base. 

Have we reached a crescendo of technology progress on the eve of what could be the worst recession since the 1930s?

Lack of technology progress won’t just manifest in the form of lost jobs (300,000 so far this year), but an overall decrease of investment into new technologies. In the 4th quarter of 2007, equipment spending dropped only 4% compared to a 31% drop in venture capital investment.

One immediate example of this the new Mac Mini. Apple has production designs for it but is opting not to manufacture because “you wouldn’t buy one anyway“. 

Recession effects all parts of the economy. Some sectors may remain under enough demand to continue making sales, others will have to scale back. Or hibernate. For us bleeding edge technology nerds this means we could be looking at a mellow few years.

And for those of you feeling left behind by all this technology racing past: now’s your chance to catch up!