The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Creative Destruction (Schumpeterian Conception)

  • Arnold Heertje
Reference work entry


Schumpeter invented the phrase ‘creative destruction’ in his famous book on the development of capitalism into socialism (Schumpeter 1942). In his view the process of creative destruction is the essential fact about capitalism and refers to the incessant mutation of the economic structure from within, destroying the old and creating a new.


Creative destruction Dynamic efficiency Information technology Innovation Restrictive practices Schumpeter, J. A. 

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  1. Heertje, A. 2006. Schumpeter on the economics of innovation and the development of capitalism. Cheltenham: Edward Elgar.Google Scholar
  2. Metcalfe, J.S. 1998. Evolutionary economics and creative destruction. London: Routledge.CrossRefGoogle Scholar
  3. Reisman, D. 2004. Schumpeter’s market. Cheltenham: Edward Elgar.CrossRefGoogle Scholar
  4. Schumpeter, J. 1942. Capitalism, socialism, and democracy. New York: Harper.Google Scholar

Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Arnold Heertje
    • 1
  1. 1.Organization NameCityUK