For schools like Wharton, the last few years have been a whirlwind. Students in droves tuned in to the Internet revolution, turned on to the dream of dot-com riches - and then dropped out to start their own companies. The urgency of the new technology-driven economy even called into question the relevance of the traditional MBA. Applications fell dramatically: They were down at 27 percent of full-time MBA programs in 1999 and at 44 percent in 2000, according to the Graduate Management Admissions Council.

That was then. With the recent Nasdaq plunge, students are staying in school and once again flocking to traditional employers [see "The Young and the Cautious,"]. And early indicators point to a surge in people applying to business schools to ride out the economic slowdown. The number of people taking the Graduate Management Admissions Test, required to get into business school, was up 7 percent in 2000 over the previous year, although the figures are still down from mid-1990s levels. Further up the pipeline, Kaplan, which helps students prepare for the GMAT, reports a 20 percent rise in enrollment for its prep classes over this time last year.

The big wave, if it's coming, hasn't hit yet, but the tide appears to have turned in favor of b-schools. Institutions that suffered a drought during the past few years say that the number of applications is rising. Applications to the Boston University School of Management are up 70 percent over this time last year. Across the Atlantic, London Business School reports a 20 percent increase in applications this year - after being down about 10 percent last year. And a similar upswing at the Haas School of Business at the University of California at Berkeley, where the number of full-time MBA applications fell 15 percent between 1999 and 2000, suggests the downward trend may have bottomed out. "The decline in applications in 1999 and 2000 coincided with the dot-com boom," says Jay Lowsky, associate dean of the MBA program. "The apparent end of that decline coincides with the dot-com bust."

The dot-com era has been good medicine for b-schools. It dispelled decades of complacency and prodded schools out of their technological torpor. "The new economy has had a profound impact on the top MBA programs," says Joseph B. White, dean of the University of Michigan Business School.