Creative Destruction

Creative destruction is an economic concept that describes the process by which new innovations replace outdated products, services, or ways of doing business. This cycle often leads to the decline or disappearance of old industries while fostering growth in new ones. For instance, the rise of digital photography led to the decline of film cameras. While creative destruction can cause job losses and business failures, it ultimately drives economic progress by encouraging innovation, improving efficiency, and enhancing consumer choice, leading to a dynamic and evolving marketplace.