Synonyms
Creative destruction; Growth and development; Modernization
A variety of factors will cause changes in an economy. Among the most important are growth and development. These involve the introduction of innovations into the economy – such as new products, productive techniques, or technology. These special factors were analyzed by economist Joseph A. Schumpeter who became known for his contributions to economic theory in the area of innovation and entrepreneurship. This entry introduces Schumpeter’s philosophy as well as his theoretical construct of creative destruction. He is often credited for starting modern growth theory that is based on the inevitable by-product of the process of development and innovation. Schumpeter’s description of the innovation process and its diffusion continues to be characteristic in the contemporary knowledge- and technologically driven global economy (Carayannis and Ziemnowicz 2007).
Entrepreneurial Innovation and Economic Change and Development
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Ziemnowicz, C. (2013). Joseph A. Schumpeter and Innovation. In: Carayannis, E.G. (eds) Encyclopedia of Creativity, Invention, Innovation and Entrepreneurship. Springer, New York, NY. https://doi.org/10.1007/978-1-4614-3858-8_476
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