Creative Destruction & Process Renewal
Dynamic capitalism is the process of wealth creation characterized by the dynamics of new, creative firms forming and growing and old, large firms declining and failing. In this model, it is disequilibrium - the disruption of existing markets by new entries - that makes capitalism lead to wealth creation (Kirchhoff, 1994)
Creative Destruction incessantly revolutionizes the economic structure from within, destroying the old structure and creating a new one.
- The profit of the new firms is the key to economic growth and progress. By introducing a new and valuable product, the innovator obtains temporary monopoly power until rivals figure out how to mimic the innovation.
The forces of entrepreneurship, competition, and globalization have encouraged new technologies and business methods that raise efficiency and efficacy. The business system works to drive out inefficiency and forces business process renewal.
Creative Destruction incessantly revolutionizes the economic structure from within, destroying the old structure and creating a new one.
- The profit of the new firms is the key to economic growth and progress. By introducing a new and valuable product, the innovator obtains temporary monopoly power until rivals figure out how to mimic the innovation.
The forces of entrepreneurship, competition, and globalization have encouraged new technologies and business methods that raise efficiency and efficacy. The business system works to drive out inefficiency and forces business process renewal.
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