Creative destruction

Abstract

When considering creative destruction as the driver concept for Schumpeter’s book entitled The Theory of Economic Development. An Inquiry into Profits, Capital, Credit, Interest, and the Business Cycle, published one century ago, the concepts of innovation and entrepreneurship play a fundamental role in the development of capitalism. Since COVID-19, technological innovation has accelerated the use of the digital economy through different platforms looking to continue remote work; the advancement of artificial intelligence (AI), quantum computing, biotechnology, and the Internet of robotics-enabled devices, edge computing, and 5G have accelerated consumption patterns globally. Blockchain technology, the metaverse (Hazan et al., 2022), and cryptocurrencies will be fundamental features in the economic and social future since wealthy nations will be able to use new technologies to address issues like health care shortages and climate change. However, for poorer countries, these technologies may lead to increased inequality. Additionally, these technologies come with potential risks such as the spread of misinformation and job loss in many industries. The existence of capitalism based on credit, market, and private property, and these related to the role of profit, the interest rate, and the business cycle ingrain in a complex social system where different changes happen through articulating technological innovations and new combinations led by the entrepreneur, therefore transforming social reproduction.