Joseph Schumpeter's theories on innovation and creative destruction have shaped modern economic thinking from "summary" of The Worldly Philosophers by Robert L. Heilbroner
Joseph Schumpeter, an Austrian economist, introduced the concept of creative destruction in the early 20th century. According to Schumpeter, innovation is the driving force behind economic growth and progress. He believed that entrepreneurs play a crucial role in the capitalist system by introducing new products, technologies, and business models that disrupt existing markets and create new ones. Schumpeter argued that this process of creative destruction is essential for the long-term health of the economy. He believed that without innovation, economies would stagnate and fail to adapt to changing conditions. In Schumpeter's view, competition spurs innovation by encouraging entrepreneurs to develop new and better products in order t...
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