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Joseph Schumpeter’s concept of creative destruction describes the “process of industrial mutation that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one.” This dynamic process is driven by innovation and is considered the essential fact about capitalism, where new products, processes, and organizational forms displace existing ones, driving long-term growth.
In his book “Capitalism, Socialism, and Democracy,” Joseph Schumpeter positioned creative destruction as the engine of capitalist progress. This concept stood in stark contrast to the static equilibrium models of neoclassical economics, which emphasized price competition within existing structures. Schumpeter argued that the most significant form of competition comes not from firms producing the same goods more cheaply, but from new innovations that render existing goods, processes, or entire business models obsolete.
The central figure in this process is the entrepreneur, who introduces these innovations (or “new combinations”). This could be a new product, a new method of production, a new market, a new source of supply, or a new organizational structure. By successfully introducing an innovation, the entrepreneur gains temporary monopoly profits, which are the primary incentive for taking risks. However, these profits soon attract imitators, and eventually other entrepreneurs with even newer innovations, leading to a cyclical process of boom and bust known as business cycles. This perpetual cycle of destroying the old to create the new, while disruptive and causing short-term pain like bankruptcies and unemployment, is what ultimately drives up productivity and standards of living in the long run.
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シュンペーターの創造的破壊理論
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