This paper presents an investigation into the nature and significance of fluctuations in technological activity. Various cases of technological change in construction, farm equipment, railroading, ship building and electric power industries are analysed. The results of this study indicate that the cyclinical phenomenon is an integral part of the process of technological change. Further, the origin of business cycles may well be in the cyclicity of technological activity. This has the important implication that the economic stabilization policy must be at least partially based on the considerations of technological innovation.