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Creative destruction

Listed author(s):
  • Faruk Ülgen


    (CREG - Centre de recherche en économie de Grenoble - Grenoble 2 UPMF - Université Pierre Mendès France)

The creative destruction is used to describe the evolution of a capitalist economy through its endogenous dynamics assumed to be mainly founded on entrepreneurs' decisions and strategies. These strategies aim at strengthening dominant positions on markets in order to give firms more profit and higher control on market evolution. Such a (anti)competitive aim does improve, according to some economists, the functioning of economies while other economists believe that the creation can finally result in some destructive processes. Whatever the theoretical position that one can adopt, the relevant question is related to the issue of creating, improving, and framing entrepreneurial dynamics to let them reinforce positive changes which would be able to raise the welfare of the society. The design and implementation of relevant industrial policies become then a crucial issue in economic development.

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Paper provided by HAL in its series Post-Print with number halshs-01026254.

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Date of creation: 2013
Publication status: Published in Carayannis, E. G. Encyclopedia of creativity, invention, innovation and entrepreneurship., Springer, pp.281-287, 2013
Handle: RePEc:hal:journl:halshs-01026254
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