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Creative devastation (German: schöpferische Zerstörung), sometimes known as Schumpeter's gale, is a concept in economic science which since the 1950s is the most readily identified with the Austrian-born economist Joseph Schumpeter^[1] who derived information technology from the work of Karl Marx and popularized information technology every bit a theory of economical innovation and the business cycle.

Co-ordinate to Schumpeter, the "gale of creative destruction" describes the "process of industrial mutation that continuously revolutionizes the economic structure from inside, incessantly destroying the old 1, incessantly creating a new 1".^[ii] In Marxian economic theory the concept refers more broadly to the linked processes of the accumulation and annihilation of wealth under capitalism.^[3] ^[4] ^[5]

The High german sociologist Werner Sombart has been credited^[1] with the first apply of these terms in his work Krieg und Kapitalismus (War and Capitalism, 1913).^[6] In the earlier work of Marx, however, the idea of creative destruction or anything (German: Vernichtung) implies not only that capitalism destroys and reconfigures previous economic orders, merely also that information technology must ceaselessly devalue existing wealth (whether through state of war, dereliction, or regular and periodic economic crises) in lodge to clear the ground for the creation of new wealth.^[3] ^[four] ^[5]

In Commercialism, Socialism and Democracy (1942), Joseph Schumpeter developed the concept out of a conscientious reading of Marx'southward thought (to which the whole of Part I of the book is devoted), arguing (in Part Ii) that the artistic-destructive forces unleashed by capitalism would eventually lead to its demise as a system (see beneath).^[7] Despite this, the term afterward gained popularity within mainstream economics as a clarification of processes such every bit downsizing in guild to increment the efficiency and dynamism of a company. The Marxian usage has, however, been retained and further developed in the work of social scientists such as David Harvey,^[8] Marshall Berman,^[ix] Manuel Castells^[10] and Daniele Archibugi.^[11]

History [edit]

In Marx'southward thought [edit]

Although the modern term "creative destruction" is not used explicitly past Marx, it is largely derived from his analyses, specially in the work of Werner Sombart (whom Engels described as the only German professor who understood Marx's Capital),^[12] and of Joseph Schumpeter, who discussed at length the origin of the thought in Marx's work (see below).

In The Communist Manifesto of 1848, Karl Marx and Friedrich Engels described the crunch tendencies of capitalism in terms of "the enforced destruction of a mass of productive forces":

Modern bourgeois social club, with its relations of production, of exchange and of belongings, a club that has conjured upwardly such gigantic means of production and of substitution, is like the sorcerer who is no longer able to control the powers of the nether world whom he has called up past his spells. ... Information technology is enough to mention the commercial crises that past their periodical render put the existence of the whole of bourgeois society on trial, each time more threateningly. In these crises, a not bad function non only of existing product, but as well of previously created productive forces, are periodically destroyed. In these crises, there breaks out an epidemic that, in all earlier epochs, would have seemed an applesauce – the epidemic of over-production. Society suddenly finds itself put back into a state of momentary barbarism; it appears every bit if a famine, a universal war of devastation, had cut off the supply of every means of subsistence; industry and commerce seem to be destroyed; and why? Because there is too much culture, too much means of subsistence, besides much industry, besides much commerce. The productive forces at the disposal of society no longer tend to further the development of the atmospheric condition of bourgeois property; on the contrary, they take get as well powerful for these atmospheric condition. ... And how does the bourgeoisie get over these crises? On the one hand by enforced destruction of a mass of productive forces; on the other, by the conquest of new markets, and by the more thorough exploitation of the onetime ones. That is to say, by paving the way for more extensive and more destructive crises, and by diminishing the ways whereby crises are prevented.^[3]

A few years later, in the Grundrisse, Marx was writing of "the violent destruction of capital not by relations external to it, but rather as a condition of its cocky-preservation".^[4] In other words, he establishes a necessary link between the generative or artistic forces of production in capitalism and the destruction of capital value as one of the key ways in which capitalism attempts to overcome its internal contradictions:

These contradictions lead to explosions, cataclysms, crises, in which ... momentaneous break of labour and anything of a great portion of capital ... violently pb it back to the point where it is enabled [to go on] fully employing its productive powers without committing suicide.^[four] ^[13]

In the Theories of Surplus Value ("Book IV" of Das Kapital, 1863), Marx refines this theory to distinguish between scenarios where the destruction of (commodity) values affects either utilize values or exchange values or both together.^[8] The destruction of substitution value combined with the preservation of use value presents clear opportunities for new capital investment and hence for the repetition of the production-devaluation cycle:

the destruction of capital through crises means the depreciation of values which prevents them from after renewing their reproduction process equally upper-case letter on the same calibration. This is the ruinous consequence of the fall in the prices of bolt. Information technology does not cause the destruction of any use-values. What one loses, the other gains. Values used equally capital letter are prevented from acting once again as upper-case letter in the hands of the aforementioned person. The former capitalists go bankrupt. ... A large function of the nominal capital of the lodge, i.e., of the exchange-value of the existing majuscule, is in one case for all destroyed, although this very destruction, since information technology does not impact the utilize-value, may very much expedite the new reproduction. This is likewise the period during which moneyed interest enriches itself at the cost of industrial involvement.^[fourteen]

Social geographer David Harvey sums up the differences between Marx's usage of these concepts and Schumpeter'south: "Both Karl Marx and Joseph Schumpeter wrote at length on the 'creative-destructive' tendencies inherent in capitalism. While Marx clearly admired capitalism'south inventiveness he ... strongly emphasised its self-destructiveness. The Schumpeterians have all forth gloried in capitalism's endless inventiveness while treating the destructiveness as generally a matter of the normal costs of doing concern".^[15]

Other early usage [edit]

In Hinduism, the god Shiva is simultaneously destroyer and creator, portrayed as Shiva Nataraja (Lord of the Dance), which is proposed equally the source of the Western notion of "creative destruction".^[1]

In the Origin of Species, which was published in 1859, Charles Darwin wrote that the "extinction of old forms is the about inevitable consequence of the production of new forms." Ane notable exception to this dominion is how the extinction of the dinosaurs facilitated the adaptive radiations of mammals. In this case creation was the consequence, rather than the cause, of destruction.

In philosophical terms, the concept of "artistic destruction" is close to Hegel'due south concept of sublation. In German language economic discourse it was taken upwardly from Marx's writings by Werner Sombart, especially in his 1913 text Krieg und Kapitalismus:^[16]

Once again, however, from devastation a new spirit of creation arises; the scarcity of wood and the needs of everyday life... forced the discovery or invention of substitutes for wood, forced the use of coal for heating, forced the invention of coke for the production of iron.

Hugo Reinert has argued that Sombart's formulation of the concept was influenced by Eastern mysticism, specifically the image of the Hindu god Shiva, who is presented in the paradoxical attribute of simultaneous destroyer and creator.^[1] Conceivably this influence passed from Johann Gottfried Herder, who brought Hindu idea to High german philosophy in his Philosophy of Human History (Ideen zur Philosophie der Geschichte der Menschheit) (Herder 1790–92), specifically volume III, pp. 41–64.^[1] via Arthur Schopenhauer and the Orientalist Friedrich Maier through Friedrich Nietzsche´s writings. Nietzsche represented the creative devastation of modernity through the mythical effigy of Dionysus, a figure whom he saw equally at ane and the same time "destructively creative" and "creatively subversive".^[17] In the following passage from On the Genealogy of Morality (1887), Nietzsche argues for a universal principle of a wheel of creation and destruction, such that every artistic human activity has its destructive consequence:

But take you ever asked yourselves sufficiently how much the erection of every ideal on earth has toll? How much reality has had to exist misunderstood and slandered, how many lies have had to be sanctified, how many consciences disturbed, how much "God" sacrificed every fourth dimension? If a temple is to be erected a temple must be destroyed: that is the law – let anyone who can show me a case in which information technology is non fulfilled! – Friedrich Nietzsche, On the Genealogy of Morality

Other nineteenth-century formulations of this thought include Russian agitator Mikhail Bakunin, who wrote in 1842, "The passion for destruction is a creative passion, also!"^[18] Note, nevertheless, that this earlier formulation might more accurately be termed "destructive creation",^{[ original enquiry? ]} and differs sharply from Marx's and Schumpeter's formulations in its focus on the active destruction of the existing social and political order by man agents (as opposed to systemic forces or contradictions in the instance of both Marx and Schumpeter).

Association with Joseph Schumpeter [edit]

The expression "artistic destruction" was popularized by and is most associated with Joseph Schumpeter, particularly in his book Capitalism, Socialism and Democracy, first published in 1942. Already in his 1939 book Business organization Cycles, he attempted to refine the innovative ideas of Nikolai Kondratieff and his long-wave cycle which Schumpeter believed was driven by technological innovation.^[xix] Three years later, in Capitalism, Socialism and Democracy, Schumpeter introduced the term "artistic destruction", which he explicitly derived from Marxist thought (analysed extensively in Part I of the book) and used it to describe the disruptive process of transformation that accompanies such innovation:

Capitalism ... is by nature a form or method of economic change and not just never is but never can be stationary. ... The fundamental impulse that sets and keeps the capitalist engine in motility comes from the new consumers' appurtenances, the new methods of production or transportation, the new markets, the new forms of industrial organization that capitalist enterprise creates.

... The opening upwardly of new markets, strange or domestic, and the organizational development from the craft shop and manufactory to such concerns every bit U.S. Steel illustrate the process of industrial mutation that endlessly revolutionizes the economical structure from within, incessantly destroying the old one, incessantly creating a new i. This process of Artistic Destruction is the essential fact near commercialism. It is what capitalism consists in and what every backer business organisation has got to live in.

[... Capitalism requires] the perennial gale of Creative Devastation.^[2]

In Schumpeter's vision of commercialism, innovative entry past entrepreneurs was the disruptive force that sustained economic growth, even equally it destroyed the value of established companies and laborers that enjoyed some caste of monopoly power derived from previous technological, organizational, regulatory, and economical paradigms.^[twenty] Yet, Schumpeter was pessimistic about the sustainability of this process, seeing it as leading eventually to the undermining of capitalism's own institutional frameworks:

In breaking downwards the pre-capitalist framework of society, capitalism thus broke not only barriers that impeded its progress simply besides flying buttresses that prevented its collapse. That process, impressive in its relentless necessity, was not merely a matter of removing institutional deadwood, just of removing partners of the capitalist stratum, symbiosis with whom was an essential element of the backer schema. [... T]he capitalist process in much the same fashion in which it destroyed the institutional framework of feudal society likewise undermines its own.^[vii]

Examples [edit]

Polaroid instant cameras have disappeared virtually completely with the spread of digital photography. Just to return once again in 2022 with new cameras and films, as consumer fetishists went as well far underestimating the need for the instant photo.

Schumpeter (1949) in ane of his examples used "the railroadization of the Center West as it was initiated by the Illinois Central." He wrote, "The Illinois Primal not only meant very expert business whilst it was built and whilst new cities were congenital effectually it and country was cultivated, simply it spelled the death penalty for the [sometime] agriculture of the West."^[21]

Companies that once revolutionized and dominated new industries – for example, Xerox in copiers^[22] or Polaroid in instant photography – have seen their profits fall and their dominance vanish as rivals launched improved designs or cutting manufacturing costs. In technology, the cassette tape replaced the 8-track, but to exist replaced in plow by the compact disc, which was undercut past downloads to MP3 players, which is now beingness usurped by spider web-based streaming services.^[23] Companies which fabricated money out of technology which becomes obsolete do non necessarily adapt well to the business environment created past the new technologies.

I such example is the mode in which online advert-supported news sites such every bit The Huffington Mail service are leading to artistic devastation of the traditional newspaper. The Christian Science Monitor announced in January 2009^[24] that it would no longer proceed to publish a daily newspaper edition, but would be available online daily and provide a weekly print edition. The Seattle Mail service-Intelligencer became online-only in March 2009.^[25] At a national level in USA, employment in the newspaper business fell from 455,700 in 1990 to 225,100 in 2013. Over that same period, employment in cyberspace publishing and broadcasting grew from 29,400 to 121,200.^[26] Traditional French alumni networks, which typically charge their students to network online or through newspaper directories, are in danger of artistic destruction from free social networking sites such every bit LinkedIn and Viadeo.^[27]

In fact, successful innovation is normally a source of temporary market power, eroding the profits and position of old firms, even so ultimately succumbing to the pressure of new inventions commercialised past competing entrants. Creative destruction is a powerful economic concept considering it can explain many of the dynamics or kinetics of industrial change: the transition from a competitive to a monopolistic marketplace, and back once again.^[28] It has been the inspiration of endogenous growth theory and also of evolutionary economics.^[29]

David Ames Wells (1890), who was a leading dominance on the effects of technology on the economy in the late 19th century, gave many examples of artistic devastation (without using the term) brought about past improvements in steam engine efficiency, shipping, the international telegraph network, and agronomical mechanization.^[30]

Later developments [edit]

Ludwig Lachmann [edit]

These economical facts take certain social consequences. As the critics of the market economy nowadays prefer to have their stand up on "social" grounds, it may be not inappropriate here to elucidate the true social results of the market process. Nosotros take already spoken of it equally a leveling process. More aptly, we may at present draw these results every bit an instance of what Pareto called "the circulation of elites." Wealth is unlikely to stay for long in the aforementioned hands. It passes from hand to hand as unforeseen change confers value, now on this, now on that specific resource, engendering capital letter gains and losses. The owners of wealth, nosotros might say with Schumpeter, are like the guests at a hotel or the passengers in a train: They are always there but are never for long the aforementioned people.

—Ludwig Lachmann, The Marketplace Economy and the Distribution of Wealth^[31]

David Harvey [edit]

Geographer and historian David Harvey in a series of works from the 1970s onwards (Social Justice and the Urban center, 1973;^[32] The Limits to Capital, 1982;^[33] The Urbanization of Capital, 1985;^[34] Spaces of Hope, 2000;^[35] Spaces of Capital, 2001;^[36] Spaces of Neoliberalization, 2005;^[37] The Enigma of Capital and the Crises of Capitalism, 2010^[38]), elaborated Marx's thought on the systemic contradictions of capitalism, particularly in relation to the production of the urban environs (and to the production of infinite more broadly). He adult the notion that capitalism finds a "spatial fix"^[39] for its periodic crises of overaccumulation through investment in fixed avails of infrastructure, buildings, etc.: "The built environment that constitutes a vast field of commonage means of production and consumption absorbs huge amounts of capital letter in both its structure and its maintenance. Urbanization is one fashion to absorb the capital surplus".^[xl] While the creation of the built environment can act as a form of crunch displacement, information technology can also plant a limit in its ain right, as it tends to freeze productive forces into a fixed spatial form. Equally uppercase cannot abide a limit to profitability, e'er more frantic forms of "time-infinite compression"^[41] (increased speed of turnover, innovation of e'er faster ship and communications' infrastructure, "flexible accumulation"^[42]) ensue, often impelling technological innovation. Such innovation, however, is a double-edged sword:

The upshot of continuous innovation ... is to cheapen, if not destroy, by investments and labour skills. Creative destruction is embedded within the apportionment of capital letter itself. Innovation exacerbates instability, insecurity, and in the end, becomes the prime force pushing capitalism into periodic paroxysms of crunch. ... The struggle to maintain profitability sends capitalists racing off to explore all kinds of other possibilities. New product lines are opened up, and that ways the creation of new wants and needs. Capitalists are forced to redouble their efforts to create new needs in others .... The result is to exacerbate insecurity and instability, as masses of capital and workers shift from one line of production to another, leaving whole sectors devastated .... The bulldoze to relocate to more advantageous places (the geographical move of both capital and labour) periodically revolutionizes the international and territorial sectionalisation of labour, adding a vital geographical dimension to the insecurity. The resultant transformation in the feel of space and place is matched by revolutions in the fourth dimension dimension, equally capitalists strive to reduce the turnover fourth dimension of their capital to "the twinkling of an centre".^[43]

Globalization can be viewed every bit some ultimate form of time-infinite compression, assuasive capital investment to move nearly instantaneously from 1 corner of the globe to another, devaluing fixed assets and laying off labour in one urban conglomeration while opening upward new centres of manufacture in more assisting sites for production operations. Hence, in this continual process of artistic devastation, capitalism does not resolve its contradictions and crises, just merely "moves them around geographically".^[44]

Marshall Berman [edit]

In his 1987 book All That is Solid Melts into Air: The Experience of Modernity,^[9] particularly in the chapter entitled "Innovative Self-Destruction" (pp. 98–104), Marshall Berman provides a reading of Marxist "creative devastation" to explain central processes at piece of work within modernity. The title of the book is taken from a well-known passage from The Communist Manifesto. Berman elaborates this into something of a Zeitgeist which has profound social and cultural consequences:

The truth of the matter, every bit Marx sees, is that everything that bourgeois society builds is built to be torn down. "All that is solid"—from the dress on our backs to the looms and mills that weave them, to the men and women who work the machines, to the houses and neighborhoods the workers alive in, to the firms and corporations that exploit the workers, to the towns and cities and whole regions and even nations that comprehend them all—all these are made to be cleaved tomorrow, smashed or shredded or pulverized or dissolved, then they tin can be recycled or replaced next week, and the whole process can go on again and again, hopefully forever, in ever more than assisting forms. The pathos of all conservative monuments is that their material forcefulness and solidity actually count for nothing and carry no weight at all, that they are blown abroad similar frail reeds past the very forces of capitalist evolution that they celebrate. Even the most cute and impressive bourgeois buildings and public works are disposable, capitalized for fast depreciation and planned to be obsolete, closer in their social functions to tents and encampments than to "Egyptian pyramids, Roman aqueducts, Gothic cathedrals".^[45]

Here Berman emphasizes Marx's perception of the fragility and evanescence of capitalism's immense creative forces, and makes this credible contradiction into 1 of the key explanatory figures of modernity.

In 2021, an article was published by Berman'due south younger son Daniel Berman which attempted to apply the elder Berman's formulation of creative destruction to the field of art history. Entitled Looking the Negative in the Face: Creative Devastation and the Modern Spirit in Photography, Photomontage, and Collage, the essay reconsiders the modern media of photography, photomontage, and collage through the lens of "creative destruction". In doing so, the younger Berman attempts to show that in certain works of art of the above-mentioned media, referents (such as nature, existent people, other works of art, newspaper clippings, etc.) can be given new and unique significance even while necessarily being obscured past the very nature of their presentation. The article was published in the second book of Hunter College'southward graduate art history journal Aggregation.

Manuel Castells [edit]

The sociologist Manuel Castells, in his trilogy on The Information Historic period: Economic system, Society and Culture (the first volume of which, The Ascent of the Network Society, appeared in 1996),^[x] reinterpreted the processes by which capitalism invests in sure regions of the globe, while divesting from others, using the new paradigm of "informational networks". In the era of globalization, capitalism is characterized by near-instantaneous flow, creating a new spatial dimension, "the infinite of flows".^[46] While technological innovation has enabled this unprecedented fluidity, this very process makes redundant whole areas and populations who are bypassed past informational networks. Indeed, the new spatial form of the mega-metropolis or megalopolis, is defined by Castells equally having the contradictory quality of being "globally connected and locally disconnected, physically and socially".^[47] Castells explicitly links these arguments to the notion of artistic destruction:

The "spirit of informationalism" is the culture of "creative destruction" accelerated to the speed of the optoelectronic circuits that process its signals. Schumpeter meets Weber in the internet of the network enterprise.^[48]

Daniele Archibugi [edit]

Developing the Schumpeterian legacy, the school of the Science Policy Research Unit of measurement of the University of Sussex has farther detailed the importance of creative destruction exploring, in particular, how new technologies are ofttimes idiosyncratic with the existing productive regimes and will lead to bankruptcy companies and even industries that do not manage to sustain the rate of modify. Chris Freeman and Carlota Perez have developed these insights.^[49] More than recently, Daniele Archibugi and Andrea Filippetti accept associated the 2008 economic crisis to the irksome-down of opportunities offered by data and communication technologies (ICTs).^[l] Using as a metaphor the picture Blade Runner, Archibugi has argued that of the innovations described in the film in 1982, all those associated to ICTs have get role of our everyday life. Only, on the opposite, none of those in the field of Biotech have been fully commercialized. A new economical recovery volition occur when some cardinal technological opportunities will be identified and sustained.^[51]

Technological opportunities do not enter into economic and social life without deliberate efforts and choices. We should exist able to envisage new forms of organization associated with emerging technology. ICTs have already changed our lifestyle fifty-fifty more than our economical life: they have generated jobs and profits, simply above all they take transformed the way nosotros use our fourth dimension and collaborate with the world. Biotech could bring about fifty-fifty more than radical social transformations at the core of our life. Why have these non notwithstanding been delivered? What tin can be done to unleash their potential? There are a few basic questions that demand to exist addressed.^[51]

Others [edit]

In 1992, the idea of creative destruction was put into formal mathematical terms by Philippe Aghion and Peter Howitt,^[52] giving an alternative model of endogenous growth compared to Paul Romer's expanding varieties model.

In 1995, Harvard Concern School authors Richard L. Nolan and David C. Croson released Creative Destruction: A 6-Stage Process for Transforming the Organisation. The book advocated downsizing to gratuitous upwardly slack resource, which could then be reinvested to create competitive advantage.^{[ citation needed ]}

More recently, the idea of "artistic destruction" was utilized by Max Page in his 1999 volume, The Creative Destruction of Manhattan, 1900–1940. The book traces Manhattan's abiding reinvention, frequently at the expense of preserving a concrete past. Describing this process as "creative destruction," Folio describes the circuitous historical circumstances, economics, social weather condition and personalities that take produced crucial changes in Manhattan'southward cityscape.^[53]

In addition to Max Page, others have used the term "creative destruction" to depict the process of urban renewal and modernization. T.C. Chang and Shirlena Huang referenced "artistic destruction" in their newspaper Recreating place, replacing memory: Artistic Destruction at the Singapore River. The authors explored the efforts to redevelop a waterfront area that reflected a vibrant new culture while paying sufficient homage to the history of the region.^[54] Rosemary Wakeman chronicled the evolution of an area in fundamental Paris, France known as Les Halles. Les Halles housed a vibrant marketplace starting in the twelfth century. Ultimately, in 1971, the markets were relocated and the pavilions torn down. In their place, now stand a hub for trains, subways and buses. Les Halles is also the site of the largest shopping mall in France and the controversial Centre Georges Pompidou.^[55]

The term "artistic devastation" has been applied to the arts. Alan Ackerman and Martin Puncher (2006) edited a collection of essays nether the title Against Theater: Creative destruction on the modernist stage. They detail the changes and the causal motivations experienced in theater as a result of the modernization of both the production of performances and the underlying economics. They speak of how theater has reinvented itself in the face of anti-theatricality, straining the boundaries of the traditional to include more concrete productions, which might be considered avant-garde staging techniques.^[56]

Additionally within art, Tyler Cowen's book Creative Destruction describes how art styles alter as artists are simply exposed to outside ideas and styles, fifty-fifty if they practice not intend to incorporate those influences into their art.^[57] Traditional styles may give way to new styles, and thus creative destruction allows for more diversified art, especially when cultures share their art with each other.

In his 1999 book, Even so the New Earth, American Literature in a Culture of Creative Destruction, Philip Fisher analyzes the themes of artistic devastation at play in literary works of the twentieth century, including the works of such authors as Ralph Waldo Emerson, Walt Whitman, Herman Melville, Mark Twain, and Henry James, among others. Fisher argues that creative devastation exists within literary forms just every bit information technology does within the irresolute of technology.^[58]

Neoconservative author Michael Ledeen argued in his 2002 volume The War Against the Terror Masters that America is a revolutionary nation, undoing traditional societies: "Creative devastation is our middle proper name, both inside our own society and away. We tear downwardly the onetime gild every day, from concern to scientific discipline, literature, art, architecture, and cinema to politics and the police force." His characterization of creative destruction equally a model for social evolution has met with fierce opposition from paleoconservatives.^[59]

Creative destruction has also been linked to sustainable development. The connexion was explicitly mentioned for the start time by Stuart L. Hart and Mark B. Milstein in their 1999 article Global Sustainability and the Creative Devastation of Industries,^[60] in which he argues new profit opportunities prevarication in a round of creative destruction driven by global sustainability. (An argument which they would later on on strengthen in their 2003 article Creating Sustainable Value ^[61] and, in 2005, with Innovation, Creative Devastation and Sustainability.^[62]) Andrea Fifty. Larson agreed with this vision a year later in Sustainable Innovation Through an Entrepreneurship Lens,^[63] stating entrepreneurs should be open to the opportunities for disruptive improvement based on sustainability. In 2005, James Hartshorn (et al.) emphasized the opportunities for sustainable, confusing comeback in the construction industry in his commodity Creative Destruction: Edifice Toward Sustainability.^[64]

Some economists debate that the destructive component of creative devastation has become more powerful than information technology was in the past. They merits that the creative component does not add together as much to growth as in earlier generations, and innovation has become more hire-seeking than value-creating.^[65]

Culling proper noun [edit]

The post-obit text appears to be the source of the phrase "Schumpeter'south Gale" to refer to creative devastation:

The opening upwards of new markets and the organizational development from the craft shop and factory to such concerns as Usa Steel illustrate the procedure of industrial mutation that incessantly revolutionizes the economic structure from inside, incessantly destroying the old i, incessantly creating a new one ... [The process] must be seen in its part in the perennial gale of artistic destruction; it cannot exist understood on the hypothesis that there is a perennial lull.

—Joseph Schumpeter, Commercialism, Socialism and Democracy, 1942

Impediments to Creative Devastation [edit]

Politicians often impose impediments to the forces of creative destruction by regulating entry and go out rules that get in difficult for churning to take identify. In a series of papers Andrei Shleifer and Simeon Djankov illustrate the effects of such regulation on slowing downward contest and innovation.

In popular civilisation [edit]

The film Other People's Money (1991) provides contrasting views of creative destruction, presented in 2 speeches regarding the takeover of a publicly traded wire and cablevision company in a small New England town. One speech is by a corporate raider, and the other is given by the company CEO, who is principally interested in protecting his employees and the town.

Come across also [edit]

Inventiveness techniques
Destructionism
Disruptive applied science
Extinction event
Global Innovation Alphabetize (Boston Consulting Group)
Layoff
Parable of the broken window
Product lifecycle
Pseudowork
Schumpeterian rent

References [edit]

^ ^a ^b ^c ^d ^e Reinert, Hugo; Reinert, Erik S. (2006). "Artistic Destruction in Economics: Nietzsche, Sombart, Schumpeter". Friedrich Nietzsche (1844–1900). The European Heritage in Economics and the Social Sciences. Vol. 3. pp. 55–85. doi:10.1007/978-0-387-32980-2_4. ISBN978-0-387-32979-half-dozen.
^ ^a ^b Schumpeter, Joseph A. (1994) [1942]. Commercialism, Socialism and Republic. London: Routledge. pp. 82–83. ISBN978-0-415-10762-4 . Retrieved 23 November 2011.
^ ^a ^b ^c Marx, Karl; Engels, Friedrich (2002) [1848]. The Communist Manifesto . Moore, Samuel (trans. 1888). Harmondsworth, UK: Penguin. p. 226. ISBN978-0-14-044757-6 . Retrieved 2010-xi-07 .
^ ^a ^b ^c ^d Marx, Karl (1993) [1857]. Grundrisse: Foundations of the Critique of Political Economy (rough draft). Nicolaus, Martin (trans. 1973). Harmondsworth, UK: Penguin. p. 750. ISBN978-0-fourteen-044575-6 . Retrieved 2010-11-07 .
^ ^a ^b Marx, Karl (1969) [1863]. Theories of Surplus-Value: "Volume IV" of Uppercase. Vol. two. London: Lawrence & Wishart. pp. 495–96. ISBN9780853151944 . Retrieved 2010-11-x .
^ Describing the way in which the devastation of forests in Europe laid the foundations for nineteenth-century capitalism, Sombart writes: "Wiederum aber steigt aus der Zerstörung neuer schöpferischer Geist empor" ("Over again, nevertheless, from destruction a new spirit of creation arises").Sombart, Werner (1913). Krieg und Kapitalismus (in High german). München. p. 207. ISBN978-0-405-06539-two . Retrieved 2010-11-07 .
^ ^a ^b Schumpeter, Joseph A. (1994) [1942]. Capitalism, Socialism and Democracy. London: Routledge. p. 139. ISBN978-0-415-10762-4 . Retrieved 23 November 2011.
^ ^a ^b Harvey, David (2007) [1982]. Limits to Capital letter (2nd ed.). London: Verso. pp. 200–03. ISBN978-i-84467-095-six . Retrieved 2010-xi-07 .
^ ^a ^b Berman, Marshall (1988). All that is Solid Melts into Air: The Experience of Modernity. Ringwood, Vic: Viking Penguin. ISBN978-0-86091-785-iv . Retrieved 2010-11-07 .
^ ^a ^b Castells, Manuel (2000) [1996]. The Rise of the Network Gild (2d ed.). Oxford: Blackwell Publishers. ISBN978-0-631-22140-i . Retrieved 2010-11-07 . .
^ Archibugi, Daniele; Filippetti, Andrea (2003). Innovation and Economic Crisis. Lessons and Prospects from the Economic Downturn. London: Routledge. ISBN978-0-415-74559-viii . Retrieved 2016-06-25 . .
^ Harris, Abram Fifty. (1942). "Sombart and German (National) Socialism". Journal of Political Economy. l (6): 805–35 [p. 807]. doi:10.1086/255964. JSTOR 1826617. S2CID 154171970.
^ For further discussion of the concept of creative discussion in the Grundrisse, come across Elliott, J. Due east. (1978). "Marx's "Grundrisse": Vision of Capitalism'southward Creative Destruction". Journal of Post Keynesian Economics. ane (2): 148–69. doi:ten.1080/01603477.1978.11489107. JSTOR 4537475.
^ Marx, Karl (1969) [1863]. Theories of Surplus-Value: "Book IV" of Capital. Vol. 2. pp. 495–96. ISBN9780853151944. For further caption of these quotations meet Harvey, David (2007) [1982]. Limits to Uppercase . Verso. pp. 200–03. ISBN978-1-84467-095-6.
^ Harvey, David (2010). The Enigma of Capital and the Crises of Capitalism. London: Profile Books. p. 46. ISBN978-ane-84668-308-4 . Retrieved 2010-11-10 .
^ Sombart, Due west. (1913). Krieg und Kapitalismus [War and Capitalism]. Leipzig: Duncker & Humblot. p. 207. Encounter for a give-and-take of Hegel's concept of Aufheben. Charles Edward Andrew Lincoln IV, Hegelian Dialectical Analysis of U.Due south. Voting Laws, 42 U. Dayton L. Rev. 87 (2017). See Lincoln, Charles The Dialectical Path of Police force, 2022 Rowman & Littlefield.
^ Bradbury, Malcolm; McFarlane, James (1976). Modernism: A Guide to European Literature 1890–1930. Harmondsworth, UK: Penguin. p. 446. ISBN978-0140138320.
^ The Reaction in Germany, From the Notebooks of a Frenchman, October 1842
^ McKraw, Thomas K. (2006). Business organization History Review lxxx (PDF). London: Cambridge Journals Online. p. 239. Archived from the original (PDF) on 26 February 2008. Retrieved 23 February 2012.
^ Sidak, J. Gregory; Teece, David J. (2009). "Dynamic Competition in Antitrust Law". Journal of Competition Law & Economics. v (4): 581–631 [p. 604]. doi:10.1093/joclec/nhp024.
^ Schumpeter, J. A. (1941): An economic interpretation of our fourth dimension: The Lowell Lectures, in The Economics and Sociology of Capitalism, Princeton, N.J.: Princeton University Printing, pp. 349. Equally quoted by "Schumpeter and Regional Innovation" by Esben Southward. Andersen. Chapter for Handbook of Regional Innovation and Growth. (ed. P. Cooke, Elgar Publ.)
^ de Figueiredo, John M.; Kyle, Margaret K. (March 2006). "Surviving the gales of creative destruction: the determinants of production turnover". Strategic Management Journal. 27 (3): 241–264. doi:10.1002/smj.512. JSTOR 20142331.
^ Warner Music reveals streaming income has overtaken downloadsThe Guardian, Tuesday 12 May 2015
^ Creative Destruction and Innovation in The News Industry John Gaynard'southward blog, January 21, 2009.
^ Richman, Dan; James, Andrea (2009-03-16). "Seattle P-I to publish final edition Tuesday". Seattle Postal service-Intelligencer.
^ Agency of Labor Statistics. "Series ID CES5051913001 and CES5051111001". Retrieved 22 April 2013.
^ Could LinkedIn and Viadeo Creatively Destroy the Traditional French Networks? John Gaynard's blog, January 13, 2009.
^ Sidak, J. M.; Teece, D. J. (1 December 2009). "Dynamic Competition in Antitrust Law". Journal of Competition Law and Economic science. 5 (4): 581–631. doi:10.1093/joclec/nhp024. SSRN 1479874.
^ Nelson, Richard R.; Nelson, Katherine (February 2002). "Technology, institutions, and innovation systems". Research Policy. 31 (2): 265–272. CiteSeerXten.1.ane.500.5013. doi:10.1016/S0048-7333(01)00140-8.
^ Wells, David A. (1890). Recent Economic Changes and Their Effect on Production and Distribution of Wealth and Well-Being of Society. New York: D. Appleton and Co. ISBN978-0-543-72474-8.
^ "The Marketplace and the Distribution of Wealth". Mises Institute. xxx September 2011.
^ Harvey, David (2009) [1973]. Social Justice and the City. ISBN978-0-8203-3403-5.
^ Harvey, David (2006) [1982]. The Limits to Capital . Verso. ISBN978-1-84467-095-6.
^ Harvey, David (1985). The Urbanization of Capital letter: Studies in the History and Theory of Capitalist Urbanization. ISBN978-0-8018-3144-7.
^ Harvey, David (2000). Spaces of Hope. ISBN978-0-520-22578-7.
^ Harvey, David (2001). Spaces of Capital: Towards a Critical Geography . Routledge. ISBN978-0-415-93241-7.
^ Harvey, David (2005). Spaces of Neoliberalization: Towards a Theory of Uneven Geographical Development. ISBN978-3-515-08746-9.
^ Harvey, David (2010). The Enigma of Capital and the Crises of Capitalism. London: Contour Books. ISBN978-1-84668-308-4 . Retrieved 2010-eleven-x .
^ See in particular "The Spatial Prepare: Hegel, Von Thünen and Marx", in Harvey, David (2001). Spaces of Upper-case letter: Towards a Critical Geography . Routledge. pp. 284–311. ISBN978-0-415-93241-7.
^ Harvey, David (2010). The Enigma of Capital and the Crises of Capitalism. London: Profile Books. p. 85. ISBN978-i-84668-308-4 . Retrieved 2010-11-10 .
^ Harvey, David (1995). The Condition of Postmodernity: an Enquiry into the Origins of Cultural Change. pp. 240–323. ISBN978-0-631-16294-0.
^ Harvey, David (1995). The Condition of Postmodernity. p. 147. ISBN978-0-631-16294-0.
^ Harvey, David (1995). The Condition of Postmodernity. pp. 105–06. ISBN978-0-631-16294-0.
^ David Harvey (28 June 2010). Crises of Capitalism (Webcast). Royal Society for the encouragement of Arts, Manufactures and Commerce, London: RSA Animates.
^ Berman, Marshall (1987). All That is Solid Melts into Air. p. 99.
^ Castells, Manuel. The Ascent of the Network Society. pp. 376–428.
^ Castells, Manuel. The Rise of the Network Gild. p. 404.
^ Castells, Manuel. The Rise of the Network Society. p. 199. For farther word, run across too Harding, Robert (March 2006). "Manuel Castells' Technocultural Epoch in "The Data Historic period"". Science Fiction Studies. 33 (one): 18–29. ISSN 0091-7729. JSTOR 4241406.
^ Chris Freeman and Francisco Louça, Equally Time Goes By: From the Industrial Revolutions to the Information Revolution (Oxford, Oxford University Press, 2001). Carlota Perez, Technological Revolutions and Fiscal Capital. The Dynamics of Bubbling and Golden Ages, (Cheltenham Glos, Edward Elgar, 2003).
^ Daniele Archibugi and Andrea Filippetti, Innovation and Economic Crisis Lessons and Prospects from the Economical Downturn, (London, Routledge, 2013).
^ ^a ^b Archibugi, Daniele (April 2017). "Blade Runner economics: Volition innovation atomic number 82 the economic recovery?" (PDF). Research Policy. 46 (3): 535–543. doi:10.1016/j.respol.2016.01.021.
^ Aghion, Philippe; Howitt, Peter (1992). "A Model of Growth Through Creative Destruction". Econometrica. 60 (2): 323–51. CiteSeerXten.one.1.401.6084. doi:ten.2307/2951599. hdl:1721.1/63839. JSTOR 2951599.
^ Page, Max (1999). The Creative Devastation of Manhattan, 1900–1940. Chicago: The University of Chicago Press. ISBN978-0-226-64468-4.
^ Chang, T.C.; Huang, Shirlena (Dec 2005). "Recreating place, replacing memory: Creative destruction at the Singapore River". Asia Pacific Viewpoint. 46 (3): 267–80. doi:10.1111/j.1467-8373.2005.00285.x.
^ Wakeman, Rosemary (Summertime 2007). "Fascinating Les Halles". French Politics, Culture & Society. 25 (ii): 46–72. doi:10.3167/fpcs.2007.250205.
^ Ackerman, Alan (2006). Confronting Theater . New York: Palgrave MacMillan. pp. 1–17. ISBN978-1-4039-4491-7.
^ Cowen, Tyler (2002). Creative Devastation. Princeton University Press. ISBN0-691-09016-5.
^ Fisher, Philip (1999). Still the New Globe: American Literature in a Civilisation of Creative Destruction. Harvard University Press, Second Edition. ISBN978-0674004092.
^ Laughland, John (June thirty, 2003). "Flirting with Fascism. Neocon theorist Michael Ledeen draws more from Italian fascism than from the American Correct". American Bourgeois. Archived from the original on August 28, 2011. Retrieved August 13, 2009.
^ Hart, Stuart; Milstein, Mark (1999). "Global Sustainability and the Creative Destruction of Industries". Sloan Management Review. 41 (1): 23–33.
^ Hart, Stuart L.; Milstein, Mark B. (2003). "Creating Sustainable Value". Academy of Management Executive. 17 (2): 56–67. doi:10.5465/AME.2003.10025194. S2CID 14480187.
^ Hart, Stuart 50. (2005). "Innovation, Creative Destruction and Sustainability". Research Technology Direction. 48 (v): 21–27. doi:10.1080/08956308.2005.11657334. S2CID 153047074.
^ Larson, Andrea L. (2000). "Sustainable Innovation Through an Entrepreneurship Lens". Business Strategy and the Environment. 9 (v): 304–17. doi:10.1002/1099-0836(200009/10)9:5<304::AID-BSE255>3.0.CO;2-O.
^ Hartshorn, James; Maher, Michael; Crooks, Jack; Stahl, Richard; Bond, Zoë (2005). "Creative Destruction: Building Toward Sustainability". Canadian Periodical of Civil Engineering science. 32 (1): 170–80. doi:10.1139/l04-119.
^ Komlos, John (1 October 2016). "Has Creative Devastation get more Destructive?" (PDF). The B.E. Journal of Economic Analysis & Policy. xvi (iv). doi:10.1515/bejeap-2016-0179. S2CID 11714688.