Economics Dictionary of ArgumentsHome
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| Creative destruction: Creative destruction, coined by Joseph Schumpeter, describes the process where innovation leads to the destruction of old economic structures and the creation of new ones. Essentially, new technologies and business models replace outdated ones, driving economic progress. See also Disruption, Technical progress, Innovation._____________Annotation: The above characterizations of concepts are neither definitions nor exhausting presentations of problems related to them. Instead, they are intended to give a short introduction to the contributions below. – Lexicon of Arguments. | |||
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Israel Kirzner on Creative Destruction - Dictionary of Arguments
Sobel I 16 Creative destruction/Kirzner/Sobel/Clemens: Schumpeter's view of entrepreneurship as a disruptive process of creative destruction is often contrasted with the view of Israel Kirzner, another famous economist who is known for his contributions to our understanding of entrepreneurship. >Creative destruction/Schumpeter. KirznerVsSchumpeter: Unlike Schumpeter, Kirzner stressed the role of entrepreneurs in discovering profit opportunities, acting on them, and in the process closing arbitrage gaps that exist in markets, and bringing markets closer to the competitive equilibrium. Sobel/Clemens: However, these two views are better viewed as complementary. Schumpeter's entrepreneurs innovate and bring disruptions to existing markets, with the firms at the forefront earning above-average profits that subsequently draw imitation and entry from Kirzner's type of entrepreneurs, reducing excess profits through competition and bringing the new market toward equilibrium. >Entrepreneurship/Schumpeter._____________Explanation of symbols: Roman numerals indicate the source, arabic numerals indicate the page number. The corresponding books are indicated on the right hand side. ((s)…): Comment by the sender of the contribution. Translations: Dictionary of Arguments The note [Concept/Author], [Author1]Vs[Author2] or [Author]Vs[term] resp. "problem:"/"solution:", "old:"/"new:" and "thesis:" is an addition from the Dictionary of Arguments. If a German edition is specified, the page numbers refer to this edition. |
Kirzner I Israel Kirzner Competition and Entrepreneurship Chicago 1978 Sobel I Russell S. Sobel Jason Clemens The Essential Joseph Schumpeter Vancouver 2020 |
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