Editing Creative destruction (section)

==Later developments==

===Ludwig Lachmann===

{{Blockquote|These economic facts have certain social consequences. As the critics of the market economy nowadays prefer to take their stand on "social" grounds, it may be not inappropriate here to elucidate the true social results of the market process. We have already spoken of it as a leveling process. More aptly, we may now describe these results as an instance of what [[Vilfredo Pareto|Pareto]] called "[[circulation of elite|the circulation of elites]]." Wealth is unlikely to stay for long in the same hands. It passes from hand to hand as unforeseen change confers value, now on this, now on that specific resource, engendering capital gains and losses. The owners of wealth, we might say with Schumpeter, are like the guests at a hotel or the passengers in a train: They are always there but are never for long the same people.|2=[[Ludwig Lachmann]], The Market Economy and the Distribution of Wealth<ref>{{cite web |title=The Market and the Distribution of Wealth |url=https://mises.org/library/market-and-distribution-wealth |website=Mises Institute |date=30 September 2011 }}</ref>}}

=== David Harvey ===
Geographer and historian [[David Harvey (geographer)|David Harvey]] in a series of works from the 1970s onwards (''Social Justice and the City'', 1973;<ref>{{Cite book |url=https://books.google.com/books?id=VCwLi2nVmooC |isbn=978-0-8203-3403-5 |title=Social Justice and the City |last=Harvey |first=David |author-link=David Harvey (geographer) |year=2009 |publisher=University of Georgia Press |orig-year=1973}}</ref> ''The Limits to Capital'', 1982;<ref>{{cite book |url=https://archive.org/details/limitstocapital00davi |url-access=registration |isbn=978-1-84467-095-6 |title=The Limits to Capital |publisher=Verso |last=Harvey |first=David |author-link=David Harvey (geographer) |year=2006 |orig-year=1982}}</ref> ''The Urbanization of Capital'', 1985;<ref>{{cite book |url=https://books.google.com/books?id=5lvaAAAAMAAJ |isbn=978-0-8018-3144-7 |title=The Urbanization of Capital: Studies in the History and Theory of Capitalist Urbanization |last=Harvey |first=David |author-link=David Harvey (geographer) |year=1985|publisher=Johns Hopkins University Press }}</ref> ''Spaces of Hope'', 2000;<ref>{{cite book |url=https://books.google.com/books?id=W00VHZg3u2MC |isbn=978-0-520-22578-7 |title=Spaces of Hope |last=Harvey |first=David |author-link=David Harvey (geographer) |year=2000|publisher=University of California Press }}</ref> ''Spaces of Capital'', 2001;<ref>{{cite book |url=https://archive.org/details/isbn_9780415932417 |url-access=registration |isbn=978-0-415-93241-7 |title=Spaces of Capital: Towards a Critical Geography |publisher=Routledge |last=Harvey |first=David |author-link=David Harvey (geographer) |year=2001}}</ref> ''Spaces of Neoliberalization'', 2005;<ref>{{cite book |url=https://books.google.com/books?id=Z7sS53uqTJoC |isbn=978-3-515-08746-9 |title=Spaces of Neoliberalization: Towards a Theory of Uneven Geographical Development |last=Harvey |first=David |author-link=David Harvey (geographer) |year=2005|publisher=Franz Steiner Verlag }}</ref> ''The Enigma of Capital and the Crises of Capitalism'', 2010<ref>{{cite book
|author=Harvey, David
|author-link=David Harvey (geographer)
|title=The Enigma of Capital and the Crises of Capitalism
|publisher=Profile Books
|location=London
|year=2010
|isbn=978-1-84668-308-4
|url=https://books.google.com/books?id=ww1dPgAACAAJ
|access-date=2010-11-10
}}{{Dead link|date=December 2023 |bot=InternetArchiveBot |fix-attempted=yes }}</ref>), elaborated Marx's thought on the systemic contradictions of capitalism, particularly in relation to the production of the urban environment (and to the production of space more broadly). He developed the notion that capitalism finds a "[[spatial fix]]"<ref>See in particular "The Spatial Fix: Hegel, Von Thünen and Marx", in {{cite book |url=https://archive.org/details/isbn_9780415932417 |url-access=registration |isbn=978-0-415-93241-7 |title=Spaces of Capital: Towards a Critical Geography |publisher=Routledge |last=Harvey |first=David |author-link=David Harvey (geographer) |year=2001 |pages=[https://archive.org/details/isbn_9780415932417/page/284 284]–311}}</ref> for its periodic crises of overaccumulation through investment in fixed assets of infrastructure, buildings, etc.: "The built environment that constitutes a vast field of collective means of production and consumption absorbs huge amounts of capital in both its construction and its maintenance. Urbanization is one way to absorb the capital surplus".<ref>{{cite book
|author=Harvey, David
|author-link=David Harvey (geographer)
|title=The Enigma of Capital and the Crises of Capitalism
|publisher=Profile Books
|page=85
|location=London
|year=2010
|isbn=978-1-84668-308-4
|url=https://books.google.com/books?id=ww1dPgAACAAJ
|access-date=2010-11-10
}}{{Dead link|date=December 2023 |bot=InternetArchiveBot |fix-attempted=yes }}</ref> While the creation of the built environment can act as a form of crisis displacement, it can also constitute a limit in its own right, as it tends to freeze productive forces into a fixed spatial form. As capital cannot abide a limit to profitability, ever more frantic forms of "[[time-space compression]]"<ref>{{cite book |url=https://books.google.com/books?id=RAGeva8_ElMC |isbn=978-0-631-16294-0 |pages=240–323 |title=The Condition of Postmodernity: an Enquiry into the Origins of Cultural Change |last=Harvey |first=David |author-link=David Harvey (geographer) |year=1995|publisher=Wiley }}</ref> (increased speed of turnover, innovation of ever faster transport and communications' infrastructure, "flexible accumulation"<ref>{{cite book |isbn=978-0-631-16294-0 |page=147 |title=The Condition of Postmodernity |last=Harvey |first=David |author-link=David Harvey (geographer) |year=1995|publisher=Wiley }}</ref>) ensue, often impelling technological innovation. Such innovation, however, is a double-edged sword:

{{Blockquote|The effect of continuous innovation ... is to devalue, if not destroy, past investments and labour skills. ''Creative destruction'' is embedded within the circulation of capital itself. Innovation exacerbates instability, insecurity, and in the end, becomes the prime force pushing capitalism into periodic paroxysms of crisis. ... The struggle to maintain profitability sends capitalists racing off to explore all kinds of other possibilities. New product lines are opened up, and that means the creation of new wants and needs. Capitalists are forced to redouble their efforts to create new needs in others .... The result is to exacerbate insecurity and instability, as masses of capital and workers shift from one line of production to another, leaving whole sectors devastated .... The drive to relocate to more advantageous places (the geographical movement of both capital and labour) periodically revolutionizes the international and territorial division of labour, adding a vital geographical dimension to the insecurity. The resultant transformation in the experience of space and place is matched by revolutions in the time dimension, as capitalists strive to reduce the turnover time of their capital to "the twinkling of an eye".<ref>{{cite book |isbn=978-0-631-16294-0 |pages=105–06 |title=The Condition of Postmodernity |last=Harvey |first=David |author-link=David Harvey (geographer) |year=1995|publisher=Wiley }}</ref>}}

Globalization can be viewed as some ultimate form of time-space compression, allowing capital investment to move almost instantaneously from one corner of the globe to another, devaluing fixed assets and laying off labour in one urban conglomeration while opening up new centres of manufacture in more profitable sites for production operations. Hence, in this continual process of creative destruction, capitalism does not resolve its contradictions and crises, but merely "moves them around geographically".<ref>{{Cite video
|people=David Harvey
|title=Crises of Capitalism
|medium=Webcast
|publisher=RSA Animates
|location=Royal Society for the encouragement of Arts, Manufactures and Commerce, London
|date=28 June 2010
|url=http://comment.rsablogs.org.uk/2010/06/28/rsa-animate-crisis-capitalism/}}
</ref>

=== Marshall Berman ===
In his 1987 book ''All That is Solid Melts into Air: The Experience of Modernity'',<ref name="isbn0-86091-785-1" /> particularly in the chapter entitled "Innovative Self-Destruction" (pp.&nbsp;98–104), [[Marshall Berman]] provides a reading of Marxist "creative destruction" to explain key processes at work within modernity. The title of the book is taken from a well-known passage from ''The Communist Manifesto''. Berman elaborates this into something of a ''[[Zeitgeist]]'' which has profound social and cultural consequences:

{{Blockquote|The truth of the matter, as Marx sees, is that everything that bourgeois society builds is built to be torn down. "All that is solid"—from the clothes on our backs to the looms and mills that weave them, to the men and women who work the machines, to the houses and neighborhoods the workers live in, to the firms and corporations that exploit the workers, to the towns and cities and whole regions and even nations that embrace them all—all these are made to be broken tomorrow, smashed or shredded or pulverized or dissolved, so they can be recycled or replaced next week, and the whole process can go on again and again, hopefully forever, in ever more profitable forms. The pathos of all bourgeois monuments is that their material strength and solidity actually count for nothing and carry no weight at all, that they are blown away like frail reeds by the very forces of capitalist development that they celebrate. Even the most beautiful and impressive bourgeois buildings and public works are disposable, capitalized for fast depreciation and planned to be obsolete, closer in their social functions to tents and encampments than to "Egyptian pyramids, Roman aqueducts, Gothic cathedrals".<ref>{{Cite book |last=Berman |first=Marshall |title=All That is Solid Melts into Air |year=1987 |page=99}}</ref>}}

Here Berman emphasizes Marx's perception of the fragility and evanescence of capitalism's immense creative forces, and makes this apparent contradiction into one of the key explanatory figures of modernity.

In 2021, Berman's younger son applied the elder's conception of creative destruction to the field of art history, writing in Hunter College's graduate art history journal. The essay reconsiders the modern media of photography, photomontage, and collage through the lens of "creative destruction". In doing so, the younger Berman attempts to show that in certain works of art of the above-mentioned media, referents (such as nature, real people, other works of art, newspaper clippings, etc.) can be given new and unique significance even while necessarily being obscured by the very nature of their presentation.<ref>{{Cite journal |last=Berman |first=Daniel |title=Looking the Negative in the Face: Creative Destruction and the Modern Spirit in Photography, Photomontage, and Collage |url=https://www.assemblagejournal.org/issue-2-spring-2021/daniel-berman |url-status=usurped |journal=Assemblage |volume=2 |archive-url=https://web.archive.org/web/20210518153649/https://www.assemblagejournal.org/issue-2-spring-2021/daniel-berman |archive-date=2021-05-18}}</ref>

=== Manuel Castells ===
The sociologist [[Manuel Castells]], in his trilogy on ''[[The Information Age: Economy, Society and Culture]]'' (the first volume of which, ''[[The Information Age: Economy, Society and Culture#The Rise of the Network Society|The Rise of the Network Society]]'', appeared in 1996),<ref name="isbn0-631-22140-9" /> reinterpreted the processes by which capitalism invests in certain regions of the globe, while divesting from others, using the new paradigm of "informational networks". In the era of globalization, capitalism is characterized by near-instantaneous flow, creating a new spatial dimension, "the [[space of flows]]".<ref>{{Cite book |last=Castells |first=Manuel |title=The Rise of the Network Society |pages=376–428}}</ref> While technological innovation has enabled this unprecedented fluidity, this very process makes redundant whole areas and populations who are bypassed by informational networks. Indeed, the new spatial form of the [[megacity|mega-city]] or megalopolis, is defined by Castells as having the contradictory quality of being "globally connected and locally disconnected, physically and socially".<ref>{{Cite book |last=Castells |first=Manuel |title=The Rise of the Network Society |page=404}}</ref> Castells explicitly links these arguments to the notion of creative destruction:

{{Blockquote|The "spirit of informationalism" is the culture of "creative destruction" accelerated to the speed of the optoelectronic circuits that process its signals. Schumpeter meets [[Max Weber|Weber]] in the cyberspace of the network enterprise.<ref>{{Cite book |last=Castells |first=Manuel |title=The Rise of the Network Society |page=199}} For further discussion, see also {{Cite journal
| issn = 0091-7729
| volume = 33
| issue = 1
| pages = 18–29
| last = Harding
| first = Robert
| title = Manuel Castells' Technocultural Epoch in "The Information Age"
| journal = Science Fiction Studies
| date = March 2006
| jstor = 4241406
}}</ref>
}}

===Daniele Archibugi===
Developing the Schumpeterian legacy, the school of the [[Science Policy Research Unit]] of the [[University of Sussex]] further detailed the importance of creative destruction. In particular, new technologies are often incompatible with the existing productive regimes and will bankrupt companies and even industries that change too slowly. [[Christopher Freeman|Chris Freeman]] and [[Carlota Perez]] developed these insights.<ref>[[Christopher Freeman|Chris Freeman]] and Francisco Louça, ''As Time Goes By: From the Industrial Revolutions to the Information Revolution'' (Oxford, Oxford University Press, 2001). [[Carlota Perez]], ''Technological Revolutions and Financial Capital. The Dynamics of Bubbles and Golden Ages'', (Cheltenham  Glos, Edward Elgar, 2003).</ref> More recently, [[Daniele Archibugi]] and Andrea Filippetti associated the 2008 economic crisis with the slow-down of opportunities offered by information and communication technologies (ICTs).<ref>Daniele Archibugi and Andrea Filippetti, [https://www.routledge.com/Innovation-and-Economic-Crisis-Lessons-and-Prospects-from-the-Economic/Archibugi-Filippetti/p/book/9780415602280 ''Innovation and Economic Crisis Lessons and Prospects from the Economic Downturn''], (London, Routledge, 2013).</ref> Archibugi used the 1982 film ''[[Blade Runner]]'' as a metaphor to argue that of the innovations shown, all those associated with ICTs have become part of everyday life. However, none in the field of [[biotechnology]] have been fully commercialized. A new economic recovery will occur when some key technological opportunities are identified and sustained.<ref name=Archibugi2017>{{cite journal |last1=Archibugi |first1=Daniele |title=Blade Runner economics: Will innovation lead the economic recovery? |journal=Research Policy |date=April 2017 |volume=46 |issue=3 |pages=535–543 |doi=10.1016/j.respol.2016.01.021 |url=https://eprints.bbk.ac.uk/id/eprint/18837/6/18837.pdf }}</ref>

{{Blockquote|Technological opportunities do not enter into economic and social life without deliberate efforts and choices. We should be able to envisage new forms of organization associated with emerging technology. ICTs have already changed our lifestyle even more than our economic life: they have generated jobs and profits, but above all they have transformed the way we use our time and interact with the world. Biotech could bring about even more radical social transformations at the core of our life. Why have these not yet been delivered? What can be done to unleash their potential? There are a few basic questions that need to be addressed.<ref name=Archibugi2017/>
}}

=== Others ===
In 1992, the idea of creative destruction was put into formal mathematical terms by [[Philippe Aghion]] and [[Peter Howitt (economist)|Peter Howitt]],<ref>{{cite journal |last1=Aghion |first1=Philippe |last2=Howitt |first2= Peter |title=A Model of Growth Through Creative Destruction |journal=Econometrica |year=1992 |volume=60 |issue=2 |pages=323–51 |jstor=2951599 |doi=10.2307/2951599 |hdl=1721.1/63839 |citeseerx=10.1.1.401.6084 }}</ref> giving an alternative model of [[Endogenous growth theory|endogenous growth]] compared to [[Paul Romer]]'s expanding varieties model.

In 1995, [[Harvard Business School]] authors [[Richard L. Nolan]] and David C. Croson released a book advocating downsizing to free up slack resources, which could then be reinvested to create [[competitive advantage]].<ref>{{Cite book |last1=Nolan |first1=Richard L. |url=https://books.google.com/books?id=olokqPJi73AC |title=Creative Destruction: A Six-stage Process for Transforming the Organization |last2=Croson |first2=David C. |date=1995 |publisher=Harvard Business School Press |isbn=978-0-87584-498-5 |language=en}}</ref>

More recently, the idea of "creative destruction" was utilized by Max Page in his 1999 book, ''The Creative Destruction of Manhattan, 1900–1940.''  The book traces [[Manhattan]]'s constant reinvention, often at the expense of preserving a concrete past. Describing this process as "creative destruction," Page describes the complex historical circumstances, economics, social conditions and personalities that have produced crucial changes in Manhattan's cityscape.<ref>{{cite book|last=Page|first=Max|title=The Creative Destruction of Manhattan, 1900–1940|year=1999|publisher=The University of Chicago Press|location=Chicago|isbn=978-0-226-64468-4}}</ref>

In addition to Max Page, others have used the term "creative destruction" to describe the process of urban renewal and modernization. T.C. Chang and Shirlena Huang referenced "creative destruction" in their paper ''Recreating place, replacing memory: Creative Destruction at the [[Singapore River]].'' The authors explored the efforts to redevelop a waterfront area that reflected a vibrant new culture while paying sufficient homage to the history of the region.<ref>{{cite journal|last1=Chang|first1=T.C.|first2=Shirlena|last2=Huang|title=Recreating place, replacing memory: Creative destruction at the Singapore River|journal=Asia Pacific Viewpoint|date=December 2005|volume=46|issue=3|pages=267–80|doi=10.1111/j.1467-8373.2005.00285.x}}</ref>  Rosemary Wakeman chronicled the evolution of an area in central Paris, France known as [[Les Halles]]. Les Halles housed a vibrant marketplace starting in the twelfth century. Ultimately, in 1971, the markets were relocated and the pavilions torn down. In their place, now stand a hub for trains, subways and buses. Les Halles is also the site of the largest shopping mall in France and the controversial Centre Georges Pompidou.<ref>{{cite journal|last=Wakeman|first=Rosemary|title=Fascinating Les Halles|journal=French Politics, Culture & Society|date=Summer 2007|volume=25|issue=2|pages=46–72|doi=10.3167/fpcs.2007.250205}}</ref>

The term "creative destruction" has been applied to the arts. Alan Ackerman and Martin Puncher (2006) edited a collection of essays under the title ''Against Theater: Creative destruction on the modernist stage.'' They detail the changes and the causal motivations experienced in [[theater]] as a result of the modernization of both the production of performances and the underlying economics. They speak of how theater has reinvented itself in the face of [[anti-theatricality]], straining the boundaries of the traditional to include more physical productions, which might be considered avant-garde staging techniques.<ref>{{cite book|last=Ackerman|first=Alan|title=Against Theater|url=https://archive.org/details/againsttheatrecr00puch|url-access=limited|year=2006|publisher=Palgrave MacMillan|location=New York|isbn=978-1-4039-4491-7|pages=[https://archive.org/details/againsttheatrecr00puch/page/n13 1]–17}}</ref>

Additionally within art, Tyler Cowen's book ''Creative Destruction'' describes how art styles change as artists are simply exposed to outside ideas and styles, even if they do not intend to incorporate those influences into their art.<ref>{{Cite book|title=Creative Destruction|last=Cowen|first=Tyler|publisher=Princeton University Press|year=2002|isbn=0-691-09016-5}}</ref>  Traditional styles may give way to new styles, and thus creative destruction allows for more diversified art, especially when cultures share their art with each other.

In his 1999 book, ''Still the New World, American Literature in a Culture of Creative Destruction'', [[Philip Fisher (author)|Philip Fisher]] analyzes the themes of creative destruction at play in literary works of the twentieth century, including the works of such authors as [[Ralph Waldo Emerson]], [[Walt Whitman]], [[Herman Melville]], [[Mark Twain]], and [[Henry James]], among others. Fisher argues that creative destruction exists within literary forms just as it does within the changing of technology.<ref>{{Cite book|title=Still the New World: American Literature in a Culture of Creative Destruction|last=Fisher|first=Philip|publisher=Harvard University Press, Second Edition|year=1999|isbn=978-0674004092}}</ref>

[[Neoconservative]] author [[Michael Ledeen]] argued in his 2002 book ''The War Against the Terror Masters'' that America is a revolutionary nation, undoing traditional societies: "Creative destruction is our middle name, both within our own society and abroad. We tear down the old order every day, from business to science, literature, art, architecture, and cinema to politics and the law." His characterization of creative destruction as a model for social development has met with fierce opposition from [[paleoconservative]]s.<ref>{{cite journal |author-link=John Laughland |first=John |last=Laughland |url=http://www.amconmag.com/article/2003/jun/30/00013/ |title=Flirting with Fascism. Neocon theorist Michael Ledeen draws more from Italian fascism than from the American Right |journal=American Conservative |date=June 30, 2003 |access-date=August 13, 2009 |archive-url=https://web.archive.org/web/20110828191822/http://www.amconmag.com/article/2003/jun/30/00013/ |archive-date=August 28, 2011 |url-status=dead }}</ref>

Creative destruction has also been linked to sustainable development. The connection was explicitly mentioned for the first time by Stuart L. Hart and Mark B. Milstein in their 1999 article ''Global Sustainability and the Creative Destruction of Industries'',<ref>{{cite journal |first1=Stuart |last1=Hart |first2=Mark |last2=Milstein |title=Global Sustainability and the Creative Destruction of Industries |journal=Sloan Management Review |volume=41 |issue=1 |year=1999 |pages=23–33 }}</ref> in which he argues new profit opportunities lie in a round of creative destruction driven by global sustainability. (They would strengthen this argument later in their 2003 article ''Creating Sustainable Value''<ref>{{cite journal |first1=Stuart L. |last1=Hart |first2=Mark B. |last2=Milstein |s2cid=14480187 |title=Creating Sustainable Value |journal=Academy of Management Executive |volume=17 |issue=2 |year=2003 |pages=56–67 |doi=10.5465/AME.2003.10025194 }}</ref> and, in 2005, with ''Innovation, Creative Destruction and Sustainability''.<ref>{{cite journal |first=Stuart L. |last=Hart |title=Innovation, Creative Destruction and Sustainability |journal=Research Technology Management |volume=48 |issue=5 |year=2005 |pages=21–27 |doi=10.1080/08956308.2005.11657334|s2cid=153047074 }}</ref>) Andrea L. Larson agreed with this vision a year later in ''Sustainable Innovation Through an Entrepreneurship Lens'',<ref>{{cite journal |first=Andrea L. |last=Larson |title=Sustainable Innovation Through an Entrepreneurship Lens |journal=Business Strategy and the Environment |volume=9 |year=2000 |pages=304–17 |doi=10.1002/1099-0836(200009/10)9:5<304::AID-BSE255>3.0.CO;2-O |issue=5 }}</ref> stating entrepreneurs should be open to the opportunities for disruptive improvement based on sustainability. In 2005, James Hartshorn (et al.) emphasized the opportunities for sustainable, disruptive improvement in the construction industry in his article ''Creative Destruction: Building Toward Sustainability''.<ref>{{cite journal |first1=James |last1=Hartshorn |first2=Michael |last2=Maher |first3=Jack |last3=Crooks |first4=Richard |last4=Stahl |first5=Zoë |last5=Bond |title=Creative Destruction: Building Toward Sustainability |journal=Canadian Journal of Civil Engineering |volume=32 |issue=1 |year=2005 |pages=170–80 |doi=10.1139/l04-119 |bibcode=2005CaJCE..32..170H }}</ref>

Some economists argue that the destructive component of creative destruction has become more powerful than it was in the past. They claim that the creative component does not add as much to growth as in earlier generations, and innovation has become more rent-seeking than value-creating.<ref>{{cite journal |last1=Komlos |first1=John |title=Has Creative Destruction become more Destructive? |journal=The B.E. Journal of Economic Analysis & Policy |date=1 October 2016 |volume=16 |issue=4 |doi=10.1515/bejeap-2016-0179 |s2cid=11714688 |url=https://epub.ub.uni-muenchen.de/43465/1/Komlos_Has_Creative_Destruction_become_more_Destructive.pdf }}</ref>