Creative destruction
What Creative destruction means in Economics A-Level, as defined for AQA.
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: AQA
A process in imperfectly competitive markets and monopolies whereby technological change can create or destroy barriers to entry.
A concept coined by Schumpeter where the rise of new technologies renders older products obsolete and destroys existing markets.
The dismantling of long-standing practices and markets to make way for innovation.
Innovation replacing old monopolies with new market structures.
Topics that use Creative destruction
- Technological change (AQA A-Level)
Related terms
- Barriers to entry
- Dynamic efficiency
- Innovation
- Invention
- Market structure
- Productive efficiency
- Productivity
- Structural unemployment
Using Creative destruction in the exam
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