Abstract
This paper argues that the idea of ‘creative destruction’ enters the social sciences by way of Friedrich Nietzsche. The term itself is first used by German economist Werner Sombart, who openly acknowledges the influence of Nietzsche on his own economic theory. The roots of creative destruction are traced back to Indian philosophy, from where the idea entered the German literary and philosophical tradition. Understanding the origins and evolution of this key concept in evolutionary economics helps clarifying the contrasts between today’s standard mainstream economics and the Schumpeterian and evolutionary alternative.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Similar content being viewed by others
References
Appel, M. (1992). Werner Sombart. Theoretiker und Historiker des modernen Kapitalismus. Marburg: Metropolis.
Backhaus, J. (editor) (1996). Werner Sombart (1863–1941), Social Scientist. Marburg: Metropolis, 3 vols.
Buchanan, J. (1979). What Should Economists Do? Indianapolis: Liberty Press.
Burckhardt, J. (1979). Reflections on History. Indianapolis: Liberty Classics.
Drechsler, W. (2004). ‘Natural vs. Social Sciences: On Understanding in Economics’, in Reinert E. (editor), Globalization, Economic Development and Inequality. An Alternative Perspective. Cheltenham: Elgar.
Figl, J. (1991). ‘Nietzsche’s Early Encounters with Asian Thought’, in Parkes, G. (editor), Nietzsche and Asian Thought. Chicago: University of Chicago Press.
Freeman, C. and Louca, F. (2001). As Time Goes By. From the Industrial Revolution to the Information Revolution. Oxford: Oxford University Press.
Giddens, A. (1998). The Third Way — the Renewal of Social Democracy. Cambridge: Polity Press.
Haberler, G. (1950). ‘Joseph Alois Schumpeter, 1883–1950’, in Quarterly Journal of Economics, Vol. LXIV, No. 3, August 1950, 333–372.
Hegel, G.W.F. (1953). Reason in History — a general introduction to the philosophy of history. New York: The Liberal Arts Press.
Herder, J.G. (1781). Vom Einfluss der Regierung auf die Wissenschaften, und derWissenschaften auf die Regierung, Berlin: Decker.
Herder, J.G. (1790–92). Ideen zur Philosophie der Geschichte der Menschheit. Karlsruhe: Schmieder.
Industry and Innovation, Vol. 9, Nos. 1–2, April–August 2002, Special Issue: Schumpeter’s “Lost” Seventh Chapter, J.A. Mathews, editor.
Justi, J.H.G. von (1762). Vergleichungen der Europäischen mit den Asiatischen und andern vermeintlich Barbarischen Regierungen, in drey Büchern verfasset. Berlin: In Verlag Johann Heinrich Rüdigers.
Kantzenbach, F. (1970). Johann Gottfried Herder. Hamburg: Rowohlt.
Lenger, F. (1994). Werner Sombart (1863–1941) — eine Biographie. Munich: Beck.
Levy, O. (1929). ‘Friedrich Wilhelm Nietzsche’, entry in Encyclopedia Britannica, 14th edition, Vol. 16. London: Encyclopedia Britannica Company.
Lilla, M. (1993). G. B. Vico. The Making of an Anti-Modern. Cambridge, Mass: Harvard University Press.
Nietzsche, F. (1968a). Thus spoke Zarathustra (translated by W. Kaufmann). London: Penguin Books.
Nietzsche, F. (1968b). Twilight of the Idols (translated by R. Hollingdale). London: Penguin Books.
Nietzsche, F. (1994). On the Genealogy of Morality (translated by C. Diethe). Cambridge: Cambridge University Press.
Nietzsche, F. (1995). Unfashionable observations (translated by R. Gray). Stanford: Stanford University Press.
Nietzsche, F. (2000). Digitale Bibliothek Band 31: Nietzsche. Berlin: Directmedia (CD-ROM).
Noble, D.F. (1997). The Religion of Technology. The Divinity of Man and the Spirit of Invention. New York: Knopf.
Ottmann, H. (1987). Philosophie und Politik bei Nietzsche. Berlin: de Gruyter.
Pareto, V. (1916). Trattato di Sociologia Generale, Florence: G. Barbèra, 2 volumes. (English edition The Mind and Society. New York: Harcourt, Brace and Company, 1935).
Parkes, G. (editor) (1991). Nietzsche and Asian Thought. Chicago: University of Chicago Press.
Perez, C. (2002). Technological Revolutions and Financial Capital. The Dynamics of Bubbles and Golden Ages. Cheltenham: Elgar.
Perez, C. (Forthcoming 2004). ‘Technological Revolutions, Paradigm Shifts, And Socio-Institutional Change’, in Reinert E. (editor), Globalization, Economic Development and Inequality. An Alternative Perspective. Cheltenham: Elgar.
Peters, H.F. (1977). Zarathustra’s Sister: The Case of Elisabeth and Friedrich Nietzsche. York: Crown Publishers.
Rand, A. (1957). Atlas Shrugged. New York: Random House.
Reinert, E. (1995). ‘Competitiveness and its predecessors — a 500 year cross-national perspective’. In Structural Change and Economic Dynamics, Vol. 6.
Reinert, E. (2000). ‘Karl Bücher and the Geographical Dimensions of Techno-Economic Change’, in Backhaus, Jürgen (editor), Karl Bücher: Theory — History — Anthropology — Non Market Economies. Marburg: Metropolis.
Reinert, E. (2002). ‘Schumpeter in the Context of two Canons of Economic Thought’, in Industry and Innovation, Vol. 6, No. 1.
Reinert, E. (Forthcoming 2004). (editor), Globalization, Economic Development and Inequality. An Alternative Perspective. Cheltenham: Elgar.
Reinert, E. and Daastøl, A. (1997). ‘Exploring the Genesis of Economic Innovations: The religious gestalt-switch and the duty to invent as preconditions for economic growth’, in European Journal of Law and Economics, Vol. 4, No. 2/3, 1997, and in Christian Wolff. Gesammelte Werke, Materialien und Dokumente. Hildesheim: Georg Olms Verlag, 1998.
Reinert, E. and Daastøl, A. (Forthcoming 2004). ‘The Other Canon: The History of Renaissance Economics’, in Reinert, E. (editor), Globalization, Economic Development and Inequality. An Alternative Perspective. Cheltenham: Elgar.
Santarelli, E. and Pesciarelli, E. (1990). ‘The Emergence of a Vision: The Development of Schumpeter’s Theory of Entrepreneurship’, in History of Economic Policy, Vol. 22, Winter 1990, No. 4.
Schacht, R. (1994). Nietzsche, Genealogy, Morality. London: University of California Press.
Shionoya, Y. (1997). Schumpeter and the Idea of Social Sciences. Cambridge: Cambridge University Press. (Original edition, Tokyo 1995).
Schumpeter, J.A. (1908). Das Wesen und der Haupteinhalt der Theoretischen Nationalökonomie. Leipzig: Duncker & Humblot.
Schumpeter, J.A. (1912). Theorie der wirtschaftlichen Entwicklung. Leipzig: Duncker & Humblot.
Schumpeter, J.A. (1914). Epochen der Dogmen-und Methodengeschichte. Tübingen: Mohr.
Schumpeter, J.A. (1939). Business Cycles. New York: McGraw-Hill, 2 volumes.
Schumpeter, J.A. (1942). Capitalism, Socialism and Democracy. New York: Harper.
Sokel, W. (1959). The Writer in Extremis. Stanford: Stanford University Press.
Sombart, W. (1913). Krieg und Kapitalismus. Leipzig: Duncker & Humblot.
Sombart, W. (1902/1927). Der moderne Kapitalismus. München & Leipzig: Duncker & Humblot.
Sombart, W. (1915). Händler und Helden. München & Leipzig: Duncker & Humblot.
Sombart, W. (1930). Die drei Nationalökonomien. München & Leipzig: Duncker & Humblot.
Spann, O. (1930). Types of Economic Theory, London: Allen & Unwin, published in the US as The History of Economics, New York: Norton.
Spengler, O. (1939). Decline of the West. New York: Alfred A. Knopf.
Swedberg, R. (1991). Schumpeter. A Biography. Princeton: Princeton University Press.
Vico, G. (1984). The New Science. Ithaca: Cornell University Press.
Williams, L.L. (2001). Nietzsche’s Mirror: The World as Will to Power. Lanham: Rowman & Littlefield.
Wolff, C. (1750). The Real Happiness of a People under A Philosophical King Demonstrated; Not only form the Nature of Things, but form the undoubted Experience of the Chinese under their first Founder Fohi, and his Illustrious Successors, Hoam Ti, and Xin Num. London: Printed for M. Cooper, at the Globe.
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2006 Springer Science+Business Media, LLC
About this chapter
Cite this chapter
Reinert, H., Reinert, E.S. (2006). Creative Destruction in Economics: Nietzsche, Sombart, Schumpeter. In: Backhaus, J.G., Drechsler, W. (eds) Friedrich Nietzsche (1844–1900). The European Heritage in Economics and the Social Sciences, vol 3. Springer, Boston, MA . https://doi.org/10.1007/978-0-387-32980-2_4
Download citation
DOI: https://doi.org/10.1007/978-0-387-32980-2_4
Publisher Name: Springer, Boston, MA
Print ISBN: 978-0-387-32979-6
Online ISBN: 978-0-387-32980-2
eBook Packages: Business and EconomicsEconomics and Finance (R0)