Innovation Systems in the Terms of Schumpeterian Crea-Tive Destruction

Abstract

‘Creative destruction’ is one of the most important analytical tools, taking into consideration both the economic and sociological characteristics of capitalist society. According to Schumpeter, in the long term, evolution gives rise to economic develo-pment resulting from batches of innovative solutions, leading to improvements in the standard of living. The innovation activity of firms is based on supply-side factors, hence it is large en-terprises that excel in innovation since they strive to achieve a monopoly market posi-tion and above-average profits. Schumpeter attempts to combine two elements: the spread of monopolies and the con-tinuation of economic development, both occurring through innovation, which is far more important than price competition. The Schumpeterian ‘creative destruction’ permeates the main aspects of macroeconomic activity, not only in the long term, but also in the area of economic fluctuations, structural changes, or the functioning of markets. As a result, it becomes a factor determining changes in the economic order.

Barreras de innovación en PYMES: una aproximación a través de una revisión sistemática de literatura

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E-Commerce as a Strategy for Sustainable Value Creation among Selected Traditional Open Market Retailers in Enugu State, Nigeria

“…Creative destruction is an important tool that tackles the economic and sociological aspects of capitalism. According to Schumpeter, as written by [28], in the long-term, evolution produces economic development as a fallout from sets of innovative solutions, giving rise to enhancements of living standards. This theory explained the industrial mutation process, which persistently transforms the structure of the economy from within, thereby extinguishing the previous economic order, and ushering in a new one.…”