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...
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