BNET Business Dictionary
Business Definition for: Creative Destruction
- a way of describing the endless cycle of innovation which results in established goods, services, or organizations being replaced by new models. The term was first mentioned by Joseph Schumpeter in Capitalism, Socialism and Democracy (1942), but used heavily during the dot-com boom of the late 1990s and early 2000s.
Additional Resources
- Creative Destruction and the Financial Crisis: An Interview with Richard Foster
- A coauthor of Creative Destruction explains how the business world—and the capitalist system—will change in the aftermath of the financial crisis. Richard Foster, a McKinsey director from 1982 to 2004, is a coauthor of Creative Destruction: Why Companies That Are Built to Last Underperform the...
- Articles 2009-01-12
- Creative Destruction Won't Destroy Capitalism -- Richard Foster
- Capitalism isn't dead, but it will be different, says Richard Foster, a former McKinsey senior partner and director who co-authored "Creative Destruction: Why Companies That Are Built to Last Underperform the Market -- And How to Transform Them."Â What won't change: entrepreneurs will figure out how to get around whatever...
- Blog posts 2008-12-09
- Creative Destruction: How Globalization is Changing the World's Cultures
- Tyler Cowen. Creative Destruction: How Globalization is Changing the World's Cultures. Princeton, NJ: Princeton University Press, 2002, 179 pages, $16.95, softcover.Tyler Cowen. Creative Destruction: How Globalization is Changing the World's Cultures. Princeton, NJ: Princeton University Press, 2002, 179 pages, $16.95, softcover.
- Research articles 2005-10-01
- Managing Change in a World of Excessive Change: Counterbalancing Creative Destruction and Creative Recombination
- Over the years, change management, or sweeping out the old and bringing in the new has?what else??changed. But rather than initiate something drastic like creative destruction, leaders should consider a much more modest - and perhaps more effective approach - creative recombination. As this author suggest, this can produce a...
- White papers 2004-01-01
- Creative Destruction or Just Plain Destruction? The U.S. Textile and Apparel Industries Since 1972
- This paper investigates whether the U.S. textile and apparel industries are examples of creative destruction or are they just plain destructing. The paper also investigates this question using both aggregate industry-level data and plant-level data from the U.S. Census' LRD. It finds that while the aggregate-level evidence is consistent with...
- White papers 2001-06-01
- Creative Destruction And Policy In A Model Of Endogenous Growth
- This paper extends a model of endogenous growth through the introduction of a component of knowledge that makes new technologies more productive than older vintages. Creative destruction or obsolescence of technologies underlies the growth process. In this setup, the growth effects of various policies are analyzed. These policies include selective...
- White papers 2004-07-08
- Creative Destruction and the new Money Trust
- "If U.S. banks were broken up and no longer too big to fail, they wouldn't be able to compete worldwide with other banks," says Forbes today. Not only is this wrong, but in fact the opposite is true. How do we know? History, for one. Standard Oil...
- Blog posts 2009-09-30
- Another push for creative crisis?, BUSINESS TIMES
- Business Times Malaysia 12-27-2001 DURING the height of the 1997-98 Asian financial crisis, an influential group of people in Malaysia were advocating "creative destruction" as a necessary step towards rebuilding the nation's econom Business Times Malaysia 12-27-2001...
- Research articles 2001-12-27
- Who's Your City: How Creative Class Cities Will Beat the Recession
- In this interview with BNET, Richard Florida explains why his latest book "Who's Your City?" matters to workers during a recession and how a business's location affects not only the talent pool, but also its ability to innovate. ...
- Articles 2008-03-20
- Measuring And Analyzing Cross-Country Differences In Firm Dynamics
- The process of creative destruction is being documented for a growing number of countries as the required firm-level data are becoming more easily accessible to researchers. Some early attempts have been made to compare results from individual country studies, and to gain insights into the sources of the variations across...
- White papers 2005-11-01
- Finding Opportunity in Upheaval
- The great economist Joseph Schumpeter popularized the phrase "creative destruction" to explain what primes the engine of capitalism: violent market upheaval. New products topple mature ones. Decaying old companies give way to young innovative competitors. If a business stands still, capitalism will soon sweep it into the dust...
- Blog posts 2008-10-21
- Peer-to-Peer Networks: Creative Destruction or Just Plain Destruction?
- The sales of music CDs have fallen dramatically in the last few years. A leading candidate among possible causes of this decline is the recent rise in file-sharing. The recording industry has tried to stem this decline by suing or threatening to sue individuals heavily engage in file sharing. These...
- White papers 2004-07-01
- Will Dunstone's Gamble Pay Off?
- Charles Dunstone clearly understands that innovation -- and disruption -- is the route to ongoing success. His sale of 50 per cent Carphone Warehouse's retail business to US electronics retailing giant Best Buy is the latest in a series of bold moves by its founder and CEO...
- Blog posts 2008-05-22
- Gary Becker on Whether Our Goose Is Cooked
- Gary Becker, a Nobel Prize-winning economist with creative views on economics and a wealth of experience in international economies, thinks we'll come through this crisis in reasonable shape. He says global capitalism will more or less continue on its course, rebounding from recession in a reasonably short time. He does...
- Blog posts 2008-10-27
- MEDIA DIARY
- Dangerous Danny Is it time for some creative destruction in the Conservative Party? David Cameron is about to recruit The Daily Telegraph's chief leader writer Danny Kruger to his team. The last time Kruger was let loose on the public was the 2005 election. From backroom boy...
- Research articles 2006-07-16
- Headline 2010: e-Reader device failure
- The market knows best, right? At this writing there are approximately 52 e-reader devices coming to market in the next 12 months. Fifty-two different devices coming to market (Here's what I wrote about Steve Jobs' approach to reader devices when there were just 45 e-readers on the horizon). Creative, the...
- News items 2009-11-02
- Tony Judt: Innovation Ain't Always Progress
- As a society, we praise innovation, so a review entitled "The Wrecking Ball of Innovation" raised an eyebrow. I thought immediately about Schumpeter’s famous reference to creative destruction, since wrecking balls can lead to new structures. But I didn't think it would praise wrecking balls, and I was right....
- Blog posts 2007-12-05
- Why Know-Who Trumps Know How
- This article provides six-step guide to the promotion of corporate entrepreneurship and the exploitation of innovation. The innovation process is no longer limited to intracorporate know-how, but leverages instead global know-who. Know-who based companies know who has the know-how; have the active empathy to rapidly establish the trustful relationship. In...
- White papers 2002-04-01
- Entry Deterrence in Durable-Goods Monopoly
- Some industries support Schumpeter's notion of creative destruction through innovative entrants. Others exhibit a single, persistent technological leadership. This paper explores a durable-goods monopolist threatened by entry via a new generation of the durable good. It is shown that the durability of the good either acts as an entry barrier...
- White papers 2000-01-14
- Leadership in a Time of Creative Destruction
- Competitive advantage has become frustratingly elusive: harder to establish than it used to be and harder still to sustain. Strategy has always been about winners and losers. But because competitive advantage has become so elusive, today's winners are in a tougher position than ever before. This paper speculates on why...
- White papers 2005-02-15
