JoDa Hodge: Creative Destruction

Creative Destruction

A concept in capitalist theory stating that innovation causes failure, but that failure, in turn, creates more innovation. For example, suppose someone invents a better widget. If he/she markets this widget effectively, he/she will eventually drive all previous widget manufacturers out of business. However, this forces older widget manufacturers to create their own innovations that will either keep themselves in business or improve their financial situations in other ways. This is considered one of the most important concepts in capitalism.

JoDa Hodge
1, 1, 2, 3, 5, 8, 13, 21, and 34. SCreative Destruction financial definition of Creative Destruction. Creative Destruction finance term by the Free Online Dictionary.