The concept of creative destruction was first coined by Austrian economist Joseph Schumpeter. He describes it as the "process of industrial mutation that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one."
Shumpeter calls creative destruction the "essential fact about capitalism." He explains:
Situations emerge in the process of creative destruction in which many firms may have to perish that nevertheless would be able to live on vigorously and usefully is they could weather a particular storm.
As implied by the word "destruction," the