Encyclopedia of Creativity, Invention, Innovation and Entrepreneurship

2013 Edition
| Editors: Elias G. Carayannis

Creative Destruction

  • Faruk Ulgen
Reference work entry
DOI: https://doi.org/10.1007/978-1-4614-3858-8_407

Synonyms

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.

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 put to the fore the capitalist processes of destroying and reconfiguring previous economic structures. This approach argued that the capitalist evolution must ceaselessly devalue existing wealth (through war economic crises) in order to...

This is a preview of subscription content, log in to check access.

References

  1. Acs ZJ, Audretsch DB. Innovation in large and small firms: an empirical analysis. Am Econ Rev. 1988;78:678–90.Google Scholar
  2. Audretsch DB. The entrepreneurial society. Oxford: Oxford University Press; 2007.Google Scholar
  3. Norton E. Evidence of creative destruction in the U.S. economy. Small Bus Econ. 1992;4:113–23.Google Scholar
  4. Reinert H, Reinert ES. Creative destruction in economics. In: Backhaus JG, Drechsler W, editors. Friedrich Nietzsche (1844–1900). Economy and society. New York: Springer; 2010. p. 55–86.Google Scholar
  5. Schumpeter JA. The theory of economic development. Cambridge, MA: Harvard University Press; 1961 [1934].Google Scholar
  6. Schumpeter JA. Capitalism, socialism, and democracy. London: Routledge; 2000 [1942]. With a new introduction by Richard Swedberg.Google Scholar
  7. Speight AEH. Innovation, creative destruction, and endogenous growth: contemporary economic theory and the Schumpeterian legacy. In: Orati V, Dahiya SB, editors. Economic theory in the light of Schumpeter’s scientific heritage, vol. I. Rohtak: Spellbound Publications; 2001. p. 171–86.Google Scholar
  8. Tzeng C-H. A review of contemporary innovation literature: a Schumpeterian perspective. Innovat Manage Pol Pract. 2009;11:373–94.Google Scholar
  9. Ülgen F. The monetary dynamics of growth: credit economy and stability. In: Orati V, Dahiya SB, editors. Economic theory in the light of Schumpeter’s scientific heritage, vol. I. Rohtak: Spellbound Publications; 2001. p. 119–34.Google Scholar

Copyright information

© Springer Science+Business Media LLC 2013

Authors and Affiliations

  1. 1.UFR ESE-University of Grenoble IIGrenoble Cedex 9France