What is Schumpeter's theory of creative destruction?
Creative destruction is the fundamental process of capitalism. It's the incessant, evolutionary change that revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one. This is not an incidental feature but the very essence of capitalism. Entrepreneurs introduce new products, new methods of production, new forms of organization, and open new markets. These innovations upset established patterns, leading to the decline of some businesses and the rise of others, a necessary churn for progress.
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