What is Creative Destruction?

Joseph Schumpeter believed that the process of invention to create a new commercial product or service was the key to creating new demand, and new wealth.

Entrepreneurs could start up or growth their businesses by exploiting suitable inventions.

This creation would "freshen" up the market and those companies unable to respond may well have outlived their economic usefulness (Destruction).

Clearly these entrepreneurs are not responding to changes, more making changes and making markets. There is therefore an emphasis on education of the consumers of the new product.

To achieve this takes a special motivation and a special vision.