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Creative Destruction

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Encyclopedia of Creativity, Invention, Innovation and Entrepreneurship

Synonyms

Economic dynamics; Entrepreneurial economy; Entrepreneurship financing; Innovation

Intellectual Roots of the Concept

Creative destruction refers to the phenomenon of economic change through the creation of new ways of doing things that endogenously destroy and replace the old ways. It is assumed that new products and new processes are the main source of the capitalist economy’s development. The term “creative destruction” is usually used to emphasize the dynamic nature of the modern economic system and is more readily thought as a positive evolutionary process. Thus it can be regarded as the conceptual roots of the modern innovation economics.

Creative destruction is originally derived from Marxist economic theory (The Communist Manifesto of Marx and Engels, 1848, Grundrisse of Marx, 1857, and Das Capital, 1863), which brought to the forefront the capitalist processes of destroying and reconfiguring previous economic structures. This approach argued that the capitalist...

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Author information

Authors and Affiliations

  1. Grenoble Faculty of Economics, University Grenoble Alpes-Centre de Recherche en Economie de Grenoble (CREG), 1221 rue des résidences BP47, Grenoble, 38040, Cedex 9, France

    Faruk Ulgen

Authors
  1. Faruk Ulgen
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Corresponding author

Correspondence to Faruk Ulgen .

Section Editor information

  1. Decision Support Systems Laboratory, School of Production Engineering and Management, Technical University of Crete, University Campus, Kounoupidiana, 73100, Chania, Greece

    Evangelos (Vangelis) Grigoroudis

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Ulgen, F. (2017). Creative Destruction. In: Encyclopedia of Creativity, Invention, Innovation and Entrepreneurship. Springer, New York, NY. https://doi.org/10.1007/978-1-4614-6616-1_407-2

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  • DOI: https://doi.org/10.1007/978-1-4614-6616-1_407-2

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  • Print ISBN: 978-1-4614-6616-1

  • Online ISBN: 978-1-4614-6616-1

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