Schumpeter's theory of creative destruction

Schumpeter's theory of creative destruction describes how innovation drives economic progress by replacing outdated products, practices, and industries with new, more efficient ones. This process often causes old businesses to fail as new technologies and ideas transform markets. While it can be disruptive for some, it ultimately fosters overall growth, innovation, and improved products and services. Essentially, economic change is driven by creative ideas that dismantle the old to make way for the new, fueling continuous development and competitiveness in the economy.