Schumpeter's Creative Destruction

Schumpeter's concept of Creative Destruction describes how innovation drives economic growth by replacing outdated products, technologies, or processes with new and better ones. This cycle of continuous renewal leads to the decline of old industries and the rise of new ones, fostering progress. While it can cause short-term disruptions and job losses, ultimately, it fuels economic development, improves productivity, and benefits society by encouraging innovation and adaptation in a dynamic market system.