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Excerpted with permission from The Creative Destruction of Medicine: How the Digital Revolution Will Create Better Health Care by Eric Topol, M.D. Available from Basic Books, a member of The Perseus.

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Schumpeter characterized creative destruction as innovations in the manufacturing process that increase productivity, describing it as the "process of industrial mutation that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one."

Creative destruction refers to the incessant product and process innovation. mechanism by which new production units replace outdated ones. It was coined by. Joseph Schumpeter (1942), who considered it 'the essential fact about capitalism'.

He is perhaps most known for coining the phrase “creative destruction," which describes the process that sees new innovations replacing existing ones that are rendered obsolete over time.

A Simple Definition. Creative destruction can be defined as the decay of long-standing practices, procedures, products or services followed by more innovative, disruptive ones. It is based on the principle that old assumptions need to be broken so that new innovations can benefit from existing resources and energy.

An example of Schumpeter's creative destruction theory in history was the transition from the industrial revolution to the use of oil and today until we get to today's highly technological society where renewables are growing exponentially.

What is creative destruction? Schumpeter argues that industrial innovation and new technologies revolutionise the markets from within, destroying the old capitalist structure and creating new one.

New products meet customer needs better, making previous versions inadequate or obsolete. Good examples of Creative Destruction include smartwatches replacing wristwatches, cars with improved gas mileage, and streaming replacing CDs and DVDs.

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© Copyright 1997-2025
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Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
Industries
Forms in Spanish
Localized Forms
State-specific Forms
Forms Kit
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232