Creative destruction
What Creative destruction means in Economics B A-Level, as defined for Pearson Edexcel.
Definitions of Creative destruction
Exam boards and our study guides word this term in slightly different ways. Learn the version your board uses.
Check what you remember
Read the wording for your board, then hide it and explain Creative destruction in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: Pearson Edexcel
A process in the new business environment where innovative digital firms are created while traditional businesses that cannot compete are destroyed.
The process where new innovations and entrepreneurial activities replace outdated technologies and business models.
Topics that use Creative destruction
- How the digital economy affects markets and firms (Pearson Edexcel A-Level)
- Role of an entrepreneur in the economy (Pearson Edexcel A-Level)
Related terms
- Cost structures
- Digital skills
- Entrepreneurship
- Market competition
- Micromarketing
- Profit and loss
- Social media
- Viral marketing
Using Creative destruction in the exam
Check the command word and mark scheme for your exact question. After comparing your explanation with the reference, use the term in an answer on the linked topic. This practice does not predict an exam mark.
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