In his classic work, “The Theory of Economic Development” (1912), Joseph A. Schumpeter developed the concept of “creative destruction,” which remains one of the most profound theoretical foundations of innovation research.

According to Schumpeter, economic and social development is not continuous, but disruptive: new technologies, organizational forms, and ways of thinking necessarily dismantle previous structures to create new ones.

Innovation is therefore not only progress, but also transformation – a process in which the old becomes obsolete and is replaced by new, more efficient forms.

“Creative destruction” is not destructive, but the engine of evolutionary development: the rise of new solutions always goes hand in hand with the reorganization of old systems.

In the second half of the 20th century, this theory also became key in explaining urban and social innovations: social innovation cannot exist without breaking down existing institutional, cultural and economic barriers.

Schumpeter’s ideas continue to shape the discourse on innovation to this day and form a theoretical bridge between research on economic and social innovation.