Schumpeter's Theory of Economic Development

Schumpeter's Theory of Economic Development emphasizes the role of innovation and entrepreneurship in driving economic progress. He argued that economic growth occurs when entrepreneurs introduce new technologies, products, or methods, disrupting regular market patterns—a process called "creative destruction." These innovations create new opportunities, boost productivity, and lead to sustained development. Success often depends on entrepreneurs taking risks and investing in innovation, which reshapes industries and enhances overall prosperity. In essence, Schumpeter viewed dynamic entrepreneurship as the engine that propels economies forward through continuous change and innovation.