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This paper illustrates an artificial ecosystem where hierarchical organizations emerge out of collisions between individuals, problems, solutions and choice opportunities according to the rules of the Garbage Can Model of organizational choice (GCM). These organizations are subject to dynamics of imitation, growth and extinction depending on relative fitness. In particular, organizations must be able to provide advantages over isolated individuals in order to exist. In this artificial world, alternative GCM decision styles separate organizations that are founded around original competences and innovations from those that are based on variable degrees of creative imitation of existing practices. This distinction provides first of all a micro-foundation for the debate between the liability of newness and the liability of adolescence of newly-founded organizations and, secondly, an explanation for the heterogeneity of firm size distributions across industries and regional economies. Furthermore, it suggests an evolutionary mechanism for a large majority of imitating firms to co-exist along a minority of highly innovative ones. Finally, the GCM suggests that for flexible, flat organizations crowdsourcing-like mobilization of internal resources adds dynamics and complexity to evolutionary and resource-based views. This dynamics contributes to the rationales for the existence of organizations and, furthermore, it highlights a generally negected aspect of the creative destruction of firms and industries. [ABSTRACT FROM AUTHOR]

Deirdre McCloskey and Alberto Mingardi's book The Myth of the Entrepreneurial State highlights a critical debate over the effectiveness of state-guided innovation by providing a detailed assessment of the claims made by Mariana Mazzucato in The Entrepreneurial State: Debunking Public vs. Private Sector Myths that the government is the boldest innovator accountable for the greatest value to society. Many of Mazzucato's assertions of the state providing mission-oriented directionality that drives technology development do not survive the scrutiny of McCloskey's Supply-Chain Fallacy nor the reality that the government can successfully harness creative destruction. However, there are occasions of public sector innovation success in the development of military technologies, particularly during times of war, which can have beneficial spillover effects. Understanding the sufficient conditions that foster innovation and the impacts of government's influence over entrepreneurship will have critical implications and pattern predictions on future economic growth and development. [ABSTRACT FROM AUTHOR]

Pecuniary externalities—costs imposed on third parties mediated through the price system—have typically received little philosophical attention. Recently, this has begun to change. In two separate papers, Richard Endörfer (Econ Philos 38, pp. 221–241, 2022) and Hayden Wilkinson (Philos Public Affairs 50: 202–238, 2022) place pecuniary externalities at center stage. Though their arguments differ significantly, both conclude pecuniary externalities are in some sense morally problematic. If the state is not called on to regulate pecuniary externalities, then, at the very least, individuals should be conscious of how their productive and consumptive decisions affect others by changing prices. We disagree. Both arguments fail, in that neither gives us reason to think pecuniary externalities are cause for moral concern. Unless a new argument emerges, pecuniary externalities should be left alone. [ABSTRACT FROM AUTHOR]

The purpose of this article is to explore consumption practices that involve the deliberate destruction of meaningful possessions; in particular, what motivates consumers to do so, why they choose it over other divestment options and what value creation do they expect from this. This is a consumer choice acknowledged but lacking in extant research, theoretical or empirical. From the existing literature a qualitative study was developed, consisting of a series of exploratory interviews with consumers who considered that they had engaged in possession destruction. From analysis of the identified themes, we developed a temporal process, where possession destruction creates self-wellbeing for the consumer, through the elimination of negative symbolic value associated with the possession. The existence of ritualistic and taboo behaviour suggests that this type of consumption can also be conceptualised as a social, violent, and sacrificial process. [ABSTRACT FROM AUTHOR]

By following tenants who resist the destruction of their common yards in a post-renoviction neighbourhood of Uppsala (Sweden), this article examines how the local resistance by marginalized communities intersects with the effects of the financialization of housing. The article explores the concept of unhoming, as a violent, structural, and multi-scalar process that, in the name of urban renewal, destroys the places of marginalized communities in the capitalist city. For residents in a post-renoviction neighbourhood, the real-life experience of "creative destruction" entails navigating paradoxical and conflicting discourses, inflicting material, immaterial and emotional harm to the residents. The local resistance play out as a demand for housing justice, and as a forced balancing between patient dialogue and more confrontative action, in an increasingly authoritative context. Finally, the article suggests the use of a theoretical frame of place destruction in the analysis of contemporary urban struggles. [ABSTRACT FROM AUTHOR]

In the era of E-commerce and globalization, the logistics industry has become a new driving force for local economic development, with government-led logistics parks planned and constructed as a powerful policy instrument. Skeptical about whether logistics parks really take effect as expected, this paper investigates the local process of creative destruction in the logistics industry, focusing on how government-led logistics parks bridge between firm exit and firm entry during industrial renewal. Using firm-level data of third-party logistics firms in China from 2003 to 2021 and adopting system GMM estimator method, we verify that previous exit contributes to future entry but varies by the firm type and the city's importance in the regional transport network. Furthermore, we find two major roles of government-led logistics parks: (1) accelerating this process by providing the platform where various resources can be reused and reorganized into high-quality new logistics firms; and (2) prioritizing the rebirths from local existing firms over arrivals from other cities, though with some level of local protectionism. Government policies and planning decisions should maintain such function without inhibiting regional market integration. • The spatial and temporal dynamics of logistics firms are affected by government policies. • The previous exit of logistics firms in a city would affect the future entry of new logistics firms in the same city. • Heavy reliance on existing resources often leads to great multiplier effect. • Logistics parks encourage the firm entry indirectly by facilitating the resource transition from exiting firms. • What logistics parks provide is a place where complexity in the logistics system can be managed and developed. [ABSTRACT FROM AUTHOR]

Developmental state literature primarily focuses on the state's (evolving) direct relationship with large incumbent firms. This article bridges developmental state and entrepreneurial state theories by employing an open innovation logic. We study Japan (1991-2021) as an archetypal developmental state; we hand coded 83 startup policies and a corpus of media coverage of the policies' launch events and performance for how policymakers speak about ways in which startup policies strive to involve and benefit incumbent firms. Our typology of the strategic "access" benefits for incumbent firms in startup policies are: (1) access to innovative capacity, ideas and (2) access to talent. [ABSTRACT FROM AUTHOR]

• The impact of labor market institutions (LMIs) on regional patents is studied. • I argue that the supply-side approach is fallacious for Europe. • Stronger wage-setting institutions can foster innovation in Europe. • Wage-setting institutions offset the negative impact of employment protection legislation (EPL) on innovation. • Positive spillover effects are identified between European regions. The main goal of this paper is to investigate the relationship between labor market institutions (LMIs) and patents in 177 NUTS-1 and NUTS-2 European regions. Fixed effects models, ordinary least squares (OLS), the generalized method of moments estimation of the fixed effects (FE-GMM), multilevel modeling (MLM), and spatial models are employed. Patents are negatively correlated with EPL and union density and positively associated with wage bargaining coverage and centralization. As a result, a uniform wage that is higher than the competitive wage can enable the Schumpeterian creative destruction process, forcing firms to invest in innovation to remain in the market. Spatial analysis emphasizes that regional proximity promotes the flow of knowledge and increases the chance of innovation. Interactions also matter. Increased bargaining power and coordination, in particular, may outweigh the negative consequences of isolated EPL reforms. Thus, policies that strengthen wage-setting institutions are required in Europe to boost innovation. [ABSTRACT FROM AUTHOR]

This paper analyse the innovation strategies followed by firms in transition countries between 1999 and 2014. During this period, institutional changes related to pro-competition reforms have changed the matrix of incentives that firms face. We shed new light on the correlation between the pressure of competition with firms' innovation strategies in transition countries by analysing complementarity between creative destruction and creative accumulation strategies on firms' productivity. Using econometric technics for panel data, our results show negative effects of competitive pressure on creative destruction strategy, and no effects on creative accumulation. Moreover, a positive complementary effect of these strategies on firms' productivity is observed. Rather than homogeneous market-driven innovation strategies, an uneven learning path with specific combinations of creative destruction and accumulation under different competitive regimes seems to emerge. These results allow us to suggest a policy mix that articulates stimulus to innovative persistence associated with competitive capacity of the firms and incentives to cooperation between firms, in order to make the most of the complementary effects of different innovative strategies. [ABSTRACT FROM AUTHOR]

The representation of reality seems to have gained precedence over reality. In the society of the spectacle, entertainment has become the experience. Accordingly, sport organizations must increasingly provide added value to their fans' brand experience. Nowadays, entertainment and sport have merged to give birth to 'sportainment'. Through a polar type of case study, this paper examines how the strategic marketing of, and through, sport can adapt to this reality by proposing a strategic sportainment mix. This study demonstrates that the strategic sportainment mix can provide valuable insights about the theoretical fit between strategic marketing efforts by, or through, sport, on the one hand. This is in addition, on the other, to a stakeholder segmentation that categorizes fans according to their connection with sport in a society of the spectacle. The proposed sportainment mix could boost the fan lifetime value, together with both the customer and financial-based brand equity. [ABSTRACT FROM AUTHOR]

In the context of the rapid development of artificial intelligence, industrial robots, as an important manifestation of artificial intelligence technology application, provide enterprises with a "creative destruction" environment, and play a positive role in energy utilization and environmental governance. Therefore, academics have focused a lot of attention on the question of whether industrial robot application can successfully improve corporate green innovation (CGI), thus achieving green transformation, and upgrading the manufacturing industry. This paper builds a "Bartik instrument variable" to calculate the micro-enterprise robot penetration rate from 2007 to 2019, looks at the effect of industrial robot application on CGI using data from manufacturing listed companies, and discusses the mechanism, heterogeneity, and robustness of this effect. The research finds that industrial robot application significantly improve CGI, indicating that they can promote corporate green technology transformation. This effect not only enhances the scale of CGI but also strengthens the quality of CGI. In addition, the above conclusion still holds after a series of endogeneity and robustness tests. Mechanism research shows that industrial robot application contribute to CGI by improving production efficiency, human capital, and environmental governance levels. It has a good complementary optimization effect on CGI. Furthermore, heterogeneity research shows that industrial robot application has a more significant role in enhancing green innovation for enterprises that are labor-intensive, more intense market competitive, more serious environmental pollution, and have lower level of digital economy development. The research conclusion verifies the effect of artificial intelligence technology and explores its mechanism, which provides empirical references for improving corporate environmental performance and green transformation. [ABSTRACT FROM AUTHOR]

Technological advancements have significantly transformed global economies, playing a pivotal role in driving economic growth and increasing productivity. This paper explores the promise and perils of these advancements, particularly from an anti-trust perspective. Drawing from various economic theories, such as Solow's Growth Model, Endogenous Growth Theory, and Schumpeter's "creative destruction," the paper investigates how technology fosters economic development by creating new industries, increasing efficiency, and promoting innovation. However, the disruptive nature of technological progress also poses challenges, such as job displacement, income inequality, cybersecurity risks, and threats to market competition. This paper provides a transnational assessment of the impact of technological advancements on market competitiveness, focusing on how digital platforms and automation are reshaping traditional economic models. It examines regulatory responses in different jurisdictions, including the U.S., EU, and India, highlighting both the opportunities and challenges that technology-driven economies face in maintaining competitive and equitable markets. [ABSTRACT FROM AUTHOR]

Purpose: The aim of the study was to determine the impact of creative destruction on labor productivity, with the level of technology in industries as a factor modifying this impact. Design/methodology/approach: The econometric analysis was conducted for 24 manufacturing industries in Poland in 2018-2021. Employment turnover rates were used as measures of creative destruction. In modeling changes in labor productivity as a function of creative destruction, a classification of manufacturing industries into technical sectors based on the intensity of R&D was used. It was also tested whether the relationship between the examined categories has changed during the COVID-19 pandemic. Regression equations were estimated using the panel OLS. Findings: The results of the analysis showed that creative destruction had a positive impact on changes in labor productivity, but inter-industry labor reallocation was not pro-efficient. These regularities, both in terms of direction and strength of impact, did not differ during the COVID-19 pandemic. These conclusions apply only to high and medium technology industries. The lack of relationship between job creation, job destruction, labor reallocation and productivity in low-tech industries suggests that there is a threshold of R&D intensity (IR&D > 1%) required for creative destruction to play an active role in economic processes. Research limitations/implications: The categories and classification of industries used in the analysis are only approximate measures of creative destruction and technological level, so the further research is required. Especially, it is needed to confirm the thesis about the existence of a threshold of R&D intensity and the impact of creative destruction on labor productivity. Originality/value: Incorporating the level of technology as a factor modifying the impact of creative destruction on labor productivity allowed to connect two research areas: 1) the effects of technological progress on job destruction/job creation and 2) their impact on labor productivity. The regularities noted in the study may explain, at least in part, the divergent research results regarding the effects of creative destruction measured by employment turnover rates on labor productivity observed at the level of industries, sectors and regions. [ABSTRACT FROM AUTHOR]

Purpose: The economic crisis of 2008 resulted in a unique context for the empirical experimentation of organizational learning and entrepreneurship theories from Schumpeterian inspiration. The purpose of this paper is to investigate how the economic downturns change the limits and possibilities to pursue both exploration and exploitation and thus achieve innovative performance. Design/methodology/approach: This study examines an original database with the patent portfolio of 2,309 firms based in Brazil, covering a period of eight years preceding the 2008 economic crisis, that is 2000–2007, and five years thereafter, 2008–2013. To test the hypotheses empirically, the authors use the negative binomial model. Findings: The findings add to the literature in two ways. First, this study found a positive association between exploitation and exploration behaviour and innovative performance. However, this relation is curvilinear because there are diminishing negative effects on innovation. Second, regarding the distinction between creative destruction and creative accumulation, the results support the prevalence of creative accumulation, although consistent with the notion of co-occurrence of both models. Originality/value: This study expands the discussion on how entrepreneurs respond to the economic crisis in specific contexts of an emerging economy. We provide new empirical evidence through the exploration of a unique data set on the patent portfolio of 2,309 firms based in Brazil. Most of the previous literature has applied this topic to developed countries, and there are few studies that apply this topic outside the focus of US and European countries. [ABSTRACT FROM AUTHOR]

We look at how the arrival of an invention affects wage returns and the probability of moving out of employment for white- and blue-collar co-workers of the inventor. First results suggest that older workers are hurt by the arrival of an invention. This negative effect disappears when we control for education and, in particular, for the time since obtaining the last formal degree, that is, distance to human capital frontier. If anything, this effect is slightly higher for non-STEM than STEM-educated co-workers. This result suggests that retraining programs could be helpful in making the process of creative destruction and economic growth more inclusive. [ABSTRACT FROM AUTHOR]

Heritage conservation is recognised as an important component of sustainable development but is often considered a lower priority compared to other development imperatives, and societal issues. The prioritization of economic and urban development threatens urban heritage through a process known as creative destruction. This research uses the concept of creative destruction to explore the interplay between market forces and urban planning and management practices on the heritage conservation of the city of Makhanda in South Africa. Makhanda has a rich and varied cultural heritage landscape, including many individual buildings and streetscapes. A qualitative approach, including semi-structured key informant interviews and secondary sources was employed. The study found that municipal dysfunction and other urban management challenges result in difficultly in enforcing legislation and policy, and thereby threatens heritage conservation. The fates of three buildings within the historic urban fabric of the city are explored in terms of the impacts of neoliberal urbanism occurring within this context. The research contends that for heritage management to be successful, there needs to be a balanced approach through improvements in stakeholder relationships, governance, institutional capacity, knowledge sharing and community involvement in decision-making processes.

Do environmental, social, and corporate governance (ESG) metrics convergence at the country level? Is there a common mechanism influencing the key attributes of this transitional process? This paper delves into the convergence patterns of firm-specific ESG factors, aggregated at a country level, aiming to identify the drivers of convergence. Specifically, we investigate whether ESG metrics have reached a singular or multiple steady states. To address this critical issue, we employ the Phillips and Sul (Econometrica 75(6):1771–1855, 2007; J Appl Econom 24(7):1153–1185, 2009) (hereafter PS) methodology. The findings reject the hypothesis of full convergence and suggest the formation of four distinct clubs. To further scrutinize our results, we conduct statistical tests to determine whether previously identified transition paths (specifically, factors related to economic freedom) corroborate our story. [ABSTRACT FROM AUTHOR]

The proposed general theory of scientific variability for technological evolution explains one of the drivers of technological change for economic progress in human society. Variability is the predisposition of the elements in systems to assume different values over time and space. In biology, the variability is basic to explaining differences and development in organisms. In economics of technical change, the effects of variability within research fields on evolutionary dynamics of related technologies are unknown. In a broad analogy with the principles of biology, suggested theoretical framework here can clarify a basic driver of technological evolution: the variability within research fields can explain the dynamics of scientific development and technological evolution. The study sees whether statistical evidence supports the hypothesis that the rate of growth of scientific and technological fields can be explained by the level of variability within scientific fields. The validation is based on emerging research fields in quantum technologies: quantum imaging, quantum meteorology, quantum sensing, and quantum optics. Statistical evidence seems in general to support the hypothesis stated that the rate of growth can be explained by the level of scientific variability within research fields, measured with the relative entropy (indicating the dispersion of scientific topics in a research field underlying a specific technology). Nonparametric correlation with Spearman's rho shows a positive coefficient of 0.80 between entropy measures and rates of growth between scientific and technological fields. The linear model of the relation between rate of growth and scientific variability reveals a coefficient of regression equal to 1.63 (R2 = 0.60). The findings here suggest a general law that variability within research fields positively drives scientific development and technological evolution. In particular, a higher variability within research fields can support a high rate of growth in scientific development and technological evolution. The proposed general theory of scientific variability is especially relevant in turbulent environments of technology-based competition to clarify a basic determinant of technological development to design strategies of technological forecasting and management of promising innovations. [ABSTRACT FROM AUTHOR]

This paper makes the case for the connection between making land-use regulatory changes and the process of destruction and redevelopment. Under the capitalist imperative, buildings that do not fulfil the full potential for profit are likely to be demolished (or refurbished) but demolition and new development are not shaped exclusively by the immutable laws of the market as they are mediated and facilitated by specific institutional contexts. Using the case of East Midtown rezoning in New York City, the paper examines the amendments of two land-use regulatory mechanisms: the enlargement of development rights (rezoning or upzoning) and the relaxation of the spatial limitations on the usage of existing unused rights (transferable development rights). While apparently unconnected, upzoning and transferable development rights are part of the regulatory framework that seeks to secure the ongoing generation of the highest-possible profits for private as well as public interests. By examining the choreography of rezoning and transferable development rights, the paper shows how the mechanics of creative destruction work while substantiating an existing body of knowledge on land use policies and practices in New York City. When used together, rezoning and transferable development rights are instrumental in remaking the built environment. Essentially, the rezoning of a 78-block area in East Midtown Manhattan unlocks captured and latent development rights that otherwise could not come about, and demonstrates the necessity of institutional arrangements to make creative destruction actually work. [ABSTRACT FROM AUTHOR]

• The long waves of Kondratiev and Schumpeter have been absent from the current debate on declining business dynamism. • Based on extensive microeconomic data from 1986 to 2018, the study examines how the ICT revolution has influenced business dynamism. • There are two structural breaks in industrial dynamics in Portugal: an upswing in 1993 and a downturn in 2003. • Counterfactual estimates show that entry and survival become more stringent in the mature stage of a technological revolution, thereby reducing entrepreneurship's long-term disruptive potential. Following Schumpeter, several scholars have shown that development follows long-term waves. These waves are prompted by radical innovations, which, until their full potential is exhausted, spread through incremental innovations and continuous learning and imitation processes. However, the discontinuity of technological progress often goes unnoticed in current debates on productivity slowdown, declining business dynamism and increasing market concentration. Our study, based on extensive microeconomic data from 1986 to 2018, examines how the ICT revolution has influenced business dynamism in Portugal. The Bai–Perron estimates show two structural breaks in industrial dynamics: an upswing in 1993 and a downturn in 2003. Our research also shows that during the late 20th century creative destruction was mainly driven by the expanding ICT sector. After 2003, however, firm dynamics became less turbulent, with less entry and job reallocation. Moreover, despite the increasing performance of a typical high-growth young firm, the incidence of startups has declined in the new century. Our results, therefore, suggest that reduced entry and increased exit risk have likely undermined the long-term disruptive potential of transformative entrepreneurship. [ABSTRACT FROM AUTHOR]

There seems to be a 'great disconnect' between India's remarkable growth and decent employment. In this keynote address I summarise the main features of this great disconnect that have several manifestations. These are (i) persistence of informal employment covering close to 90 percent of the workforce, (ii) low employment content of growth especially for the less educated, (iii) a slow but steady exclusion of women from the labour market, (iv) below subsistence wages for a majority of wage workers, (v) persistence of a high share of self-employment, and (vi) absence of either employment or social security for an overwhelming share of working people. The larger global context is one of an unrelenting process of 'creative destruction' a la Schumpeter in the advanced economies including China. Such a process in India has largely bypassed the less educated in accessing new employment. Further technological changes that are now knocking at the door in the form of frontier technologies are certain to bypass the less educated more aggressively than in the past. Will this great disconnect then become a perpetual trap in the Indian economy? Are there policy options for a more inclusive process of employment generation especially to the less educated in rural and urban areas who could also benefit by the advances in technological progress sweeping across the country. I argue for a policy shift to focus on addressing the developmental deficits mainly in rural areas while making a conscious policy choice to apply the technological advancements to benefit the hitherto neglected sectors as well as people. [ABSTRACT FROM AUTHOR]

This paper argues that the COVID-19 pandemic can and should be understood as a form of creative destruction (Schumpeter's gale), at a hyper level owing to its biological/medical dimension. Therefore, the critical response to such a hyper force is to rethink how institutions administer Public Policy in South Africa (Path Dependency), most importantly economic development planning institutions and Covid-19 responses, in the form of 'The Economic Reconstruction and Recovery Plan'. It's the contention of this paper that the reason why Covid-19 continues to impact the South African government's economic planning ethos is anchored in its developmental orientation, particularly how constitutional legalism has impaired economic development planning. This could impart be due to the unaddressed influences of the initial waves of Law and Development post-1994. The South African experience with the initial waves of Law and Development were muted owing to the problematic nature of the 1994 transition which sought peace at all costs without necessary addressing substantive economic development reform considerations. Therefore, using the policy experiences of Covid-19 and Lee's, General Theory of Law and Development, particularly the aspects of Development and State Capacity and Political Will, a revision of the South African Constitution will be called on, principally chapter's 2 and 6 (Bill of Rights) and (Province). [ABSTRACT FROM AUTHOR]

As entrepreneurs engage in a Schumpeterian process of 'creative destruction', existing market norms and values are substantially altered, which places entrepreneurship in a central role for considering society's new ethical demands. This essay attempts to fill a lacuna in the scholarship of entrepreneurial ethics that stops short of considering the ethical awareness of entrepreneurs regarding the reconstitution of values following disruption. The work of Friedrich Nietzsche informs our understanding of entrepreneurial ethics and provides guidance for 'new philosopher' entrepreneurs who become ethically aware of their task and endeavour to replace old values with new. Employing the lessons of Nietzsche can, therefore, provide valuable ethical insights for entrepreneurial ethicists as they consider what it might mean to engage in the disruption of industries, markets, and value chains. [ABSTRACT FROM AUTHOR]

The objective of the article is to empirically recognize the significance of creative destruction for the development of contemporaneous global economy, in particular: (1) the influence of creation and destruction on development processes and how this influence changed over time; (2) the effects of creation and destruction on disparities in the level of development between the so-called ‘countries of the South and the North.’ Research Design & Methods: We conducted the econometric analysis for the years 1970-2020, which we divided into four analytical periods. We used time series data from the UNCTAD database for 220 countries, the group of developing countries, and the group of developed countries. We used evometrics to measure creative destruction, which enabled its decomposition into the innovation effect (creation) and the selection effect (destruction). Modelling comprised two economic categories: GDP per capita dynamics and development gap index, relating them to the innovation and selection effects. We used linear regression and estimated the parameters using the OLS. Findings: Our results showed that both creation and destruction had a positive influence on the global GDP per capita dynamics and destruction played a dominant role in this process. Its impact increased over time. The growth of creation and destruction resulted in the increased dynamics of the development gap, which we can consider as a specific cost of development based upon creative destruction. In the period of profound geopolitical transformations in the world economy (1982-1998) creation did not affect the development of the global economy and the dynamics of development gap. Implications & Recommendations: Our results indicate that the full use of the development potential created by innovations requires uninterrupted operation of not only creation, but also properly functioning destruction. Some scholars postulate eliminating destruction from development processes. However, this may lead to a prosperity loss. The cost of creative destruction is not destruction as such but its erroneous operation caused, for example, by institutional, political, and economic factors. In the context of the economic policy of developing countries, this statement implies that solutions aimed at stimulating innovations should be accompanied by activities facilitating the transfer of resources from less to more effective uses. Contribution & Value Added: Modification of the theoretical construction of Schumpeter, enabling both theoretical and empirical analysis of the role of creative destruction in the processes of development of the world economy. The use of evometrics as a tool for measuring creative destruction at the level of the global economy. The results of the study constitute an important contribution to the discussion on the role of creative destruction in development processes, especially concerning destruction, which is commonly assigned a pejorative meaning and identified with the cost of implementing innovations. [ABSTRACT FROM AUTHOR]

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The application of machine learning (ML) to operational data is becoming increasingly important with the rapid development of artificial intelligence (AI). We propose a model where incumbents have an initial advantage in ML technology and access to (historical) operational data. We show that the increased application of ML for operational data raises entrepreneurial barriers that make the creative destruction process less destructive (less business stealing) if entrepreneurs have only limited access to the incumbent's data. However, this situation induces entrepreneurs to take on more risk and to be more creative. Policies making data generally available may therefore be suboptimal. A complementary policy is one that supports entrepreneurs' access to ML, such as open source initiatives, since doing so would stimulate creative entrepreneurship. Plain English Summary: Why generative AI and big data may make the creative destruction process not only more creative but also less destructive. We show that entrepreneurs should consider that challenging incumbents in the era of ML and big data will be more difficult since incumbents' use of ML for proprietary data makes them more formidable competitors. This fact implies that entrepreneurs need to become riskier and more creative in the future to find a competitive edge. They may therefore seek support from venture capital to become more novel in their ventures. Data protection and privacy issues became a flashpoint in the media due in part to the high-profile exposure of Facebook users' data to Cambridge Analytica in 2016 and 2017. The rapidly expanding adoption of generative AI is seen as a risk of locking in the market dominance of large incumbent technology firms. Partially in response to these events, government regulators have instituted tighter rules on data protection. The results derived in this paper suggest that a complementary policy might be to support entrepreneurs' access to and knowledge of ML technology since doing so would stimulate creative entrepreneurship. [ABSTRACT FROM AUTHOR]

Theoretical predictions of the effect of technological change on employment are ambiguous and depend on the extent to which new technology is embodied in new jobs. This paper separates positive and negative shocks and examines the extent to which technological shocks have an asymmetric effect on unemployment in nine European countries by using hidden cointegration analysis within a likelihood‐based panel framework. The findings are consistent with the hypothesis that technological changes have had an unequal effect on unemployment because negative and positive shocks have different impacts on unemployment in terms of sign and size. It is interesting to note that women appear to be the group most negatively impacted by technological shocks. The estimates also show that the results are inconsistent because technological advancement has resulted in 'creative destruction' in four countries while 'creative creation' has occurred in five of them. It is worth mentioning that the methodological framework utilized in this paper can be a useful tool for predicting the behaviour of technological shocks. Policy implications are discussed. [ABSTRACT FROM AUTHOR]

We link end-product innovations with those entrepreneurial endeavors aimed at developing firm-specific valuable, rare and unique resources (VRIO) under uncertainty. These resources are responsible for rent and sustainable competitive advantage by the resource-based view (RBV) of business strategy, yet their uncertain cost and productivity are not explicitly operationalised in RBV. We argue that acknowledging resource-uncertainty implies uncertainty in the path-dependent evolution of VRIO resources, which translate to heterogenous end-product attributes that shape the competitive environment. Resource-uncertainty requires management to be active in resource-risk-management, a role that ultimately reduces the uncertainty management observes, compared with the uncertainty that an outsider observes. Our framework highlights complementarities between those entrepreneurs responsible for disruptive innovations, and routinised innovation processes of established firms. Both cope with and manage innovation risk, and both are essential for the creative destruction process. [ABSTRACT FROM AUTHOR]

We analyze the short and long-run effects of an increase in the skill supply on skill-specific wages and unemployment in a model with endogenous, nonlinear diffusion of a general purpose technology (GPT) and labour market frictions. We calibrate and simulate the model using the trend rise in relative skill supply in the U.S. over two decades starting in the early 1970s. The transitional dynamics of the model show (i) an initial slump and long-run rise in the relative wage of high-skill labour and (ii) a long-run rise in the relative level of unemployment of low-skill versus high-skill labour. An increase in the number of skilled individuals reduces hiring costs and increases the incentive for firms to engage in the costly adoption of a new GPT. Stronger labour market rigidity and higher worker bargaining power are shown to have similar effects on relative wages and unemployment: changes in relative wages are more pronounced, whereas the response of relative unemployment is muted. The exact opposite effects are found in the case of a higher degree of substitution between products. [ABSTRACT FROM AUTHOR]

How does common ownership affect creative destruction? What are the underlying mechanisms? Do the effects of increased common ownership vary among different customer segments? Using product-level data, we show that, on average, firms with greater common ownership introduce new products at a faster rate and discontinue existing products at a similar pace. The observed economic impacts intensify over time, reflecting the gradual nature of knowledge spillovers and the learning curve. Subsequent to an increase in common ownership, portfolio firms tend to both add and drop products that are dissimilar to those of their rival firms, with the net effect of decreasing between-firm product dissimilarity. We also find that the effects are more relevant for product modules with greater technological likeness, lower barriers to market entry, and greater numbers of product market players. Product variety is substantially greater in product lines catering to higher-income households. Overall, the result highlights the procompetitive effects of increased common ownership. [ABSTRACT FROM AUTHOR]

Business survival has been a widely studied phenomenon in management literature given its impact on economic and social reality. There is some consensus that crises have a catalytic effect by driving the least efficient, productive, and profitable firms out of the market, while those best prepared with better technology, products, or business structure survive; this process is known as creative destruction. This study analyzed a sample of 5,000 firms using statistical survival models in order to identify the main factors affecting the life and disappearance of firms in periods of crisis (2008-2012) versus periods of recovery (2016-2020) to detect differentiated patterns of behavior. It was found that those firms that were driven out of the market during the crisis, unlike in the subsequent recovery period, were neither the less profitable nor the less efficient. Instead, more indebted firms or those that did not get the support of credit institutions were withdrawn from market. This result casts doubt on the effectiveness of the theorized process of creative destruction in times of economic crisis. [ABSTRACT FROM AUTHOR]

Using an administrative payroll data set for 2.6 million retail workers, we find that the staggered rollout of a major e-commerce firm's fulfillment centers reduces traditional retail workers' income in geographically proximate counties by 2.4%. Wages of hourly workers, especially part-time hourly workers, decrease significantly driven by a drop in the number of hours worked. We observe a U-shaped pattern in which both young and old workers experience a sharper decrease in wage income. Consequently, some workers experience an increase in credit card delinquency. Using data for 3.2 million stores, we find that sales (employment) at proximate stores decrease by 4% (2.1%). Exits, especially of young and small stores, increase, and entry decreases. Our results highlight how creative destruction led by e-commerce impacts local labor markets. This paper was accepted by Anindya Ghose, information systems. Funding: The authors gratefully acknowledge funding support from the Kauffman Foundation Junior Faculty Fellowship. Supplemental Material: The online appendix and data are available at https://doi.org/10.1287/mnsc.2023.4795. [ABSTRACT FROM AUTHOR]

Social transformation is core to the idea of entrepreneurship, yet it plays a minor role in entrepreneurship research. We explore humanistic approaches to change by building on the Schumpeterian perspective of transformation/creative destruction and expanding it in three critical ways. First, we argue that entrepreneurship and history should engage methodologically with transformation 'as a perspective' taken by the researcher or observer. Second, we contend that to explore the process of entrepreneurial transformation historically, it is necessary to engage in a broader conceptualisation of temporality. Third, we posit that to fully grasp transformation, we ought to study not just the reconfiguration of material resources that Schumpeter has proposed but also the immaterial (intellectual and imaginative) re-evaluations that trigger social transformation, thus focussing on the semantics of transformation. The articles in this Special Issue explore entrepreneurship and transformation through these three lenses, making social transformation more central to historical entrepreneurship research. [ABSTRACT FROM AUTHOR]

Schumpeter envisioned entrepreneurship research as a way to examine and understand how capitalism changes. This notwithstanding, contemporary entrepreneurship studies predominantly explore the emergence and growth of new business firms, thus adopting a view that assumes a positive macro-level role for entrepreneurship in society even as it neglects the destructivity which was key to Schumpeter's theory. To bring capitalism back into entrepreneurship, we suggest a narrative approach to entrepreneurial history. Specifically, we introduce counternarratives to discuss new ways of thinking about the micro-macro linkage in entrepreneurship and to open up fresh understandings of creative destruction within, and beyond, capitalism. We conclude the paper with practical suggestions for new entrepreneurial histories that develop alternative narratives. [ABSTRACT FROM AUTHOR]

The COVID-19 outbreak has had severe economic consequences across the globe. The crisis emanating from the pandemic has caused demand and supply side shocks, more far reaching than any crisis in living memory. We use a new data set from the 2020/21 Egyptian Industrial Firm Behavior Survey to examine determinants of firms' resilience during the pandemic. Crisis present the opportunity for what Schumpeter (In Economics of the Recovery Program, McGraw-Hill, 1934) calls creative destruction. Have manufacturing firms been all hit by the crisis equally, or were less efficient firms more likely to exit or downsize their activities thereby 'cleansing' the market? Two sets of factors affect firm dynamics and survival: (1) firms' innate characteristics and; (2) firm behavior, which captures the extent to which good management, innovation, the adoption of advanced technologies and worker training, have provided an opportunity for firms to adapt their business models and show greater resilience in coping with the crisis. We illustrate the vulnerability of private, smaller, informal firms and those that are not located in industrial zones. Second, pre-COVID behavioral characteristics matter for firm dynamics. The food sector and sectors identified as 'COVID sectors' show more resilience. Some behavioral traits vary by sector and are more influential depending on firm size. [ABSTRACT FROM AUTHOR]

The present study aims to propose the concept of Strategic Innovation. In this research, the qualitative method of concept analysis was used to form concept of Strategic Innovation through abductive and synthetic methods by using existing concepts and insights. For this purpose, articles published after 2000 in the database of Google scholar, Science direct, Web of science, SID.ir and Ensani.ir, which included keywords of Strategic Innovation, were selected. Then results were filtered by the keywords of Designing, Create, Changing, Development, Competitive and Performance. Finally, after reading the abstract of articles, 73 of them deemed relevant to our study and were reviewed. Studies showed that Strategic innovation is related but different from the concepts of Designing, Create, Changing, Development, Competitive and Performance. Characteristics of Strategic innovation are Innovative organizational Culture, dynamic capability, Strategic Agility, creativity, strategic entrepreneurship and Creative Destruction. The components of Strategic Innovation are the types of Strategic innovation (organizational innovation, innovation and redesign of the processes, product/service innovation, and market innovation), the methods of Strategic Innovation (incremental strategic innovation and transformational strategic innovation), the Strategic and Entrepreneurship orientation (strategic renewal, emergent strategies, Advantage and Opportunity-Seeking Behavior, and identifying the changing priorities) and Strategic Competitive behaviors (analyzing the competition mechanisms and the new competition routes). Strategic Innovation is a meta-capability that including a sum of characteristic and components. [ABSTRACT FROM AUTHOR]

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Innovation and obsolescence describe dynamics of ever-churning and adapting social and biological systems, concepts that encompass field-specific formulations. We formalize the connection with a reduced model of the dynamics of the “space of the possible” (e.g., technologies, mutations, theories) to which agents (e.g., firms, organisms, scientists) couple as they grow, die, and replicate. We predict three regimes: The space is finite, ever growing, or a Schumpeterian dystopia in which obsolescence drives the system to collapse. We reveal a critical boundary at which the space of the possible fluctuates dramatically in size, displaying recurrent periods of minimal and of veritable diversity. When the space is finite, corresponding to physically realizable systems, we find surprising structure. This structure predicts a taxonomy for the density of agents near and away from the innovative frontier that we compare with distributions of firm productivity, COVID diversity, and citation rates for scientific publications. Our minimal model derived from first principles aligns with empirical examples, implying a follow-the-leader dynamic in firm cost efficiency and biological evolution, whereas scientific progress reflects consensus that waits on old ideas to go obsolete. Our theory introduces a fresh and empirically testable framework for unifying innovation and obsolescence across fields. [ABSTRACT FROM AUTHOR]

• The process of automation could hinder political trust in government. • The impact results from unemployment, higher down-side risk and lower group participation. • The performance-based legitimacy structure in a developmental state may hinder its political legitimacy when promoting development. • The government should focus more on citizens' trust when pursuing technological development. • Social security is crucial for governance faced with fast technological advancement. The side effects of automation on the economy have been discussed frequently, but little is known regarding its political consequences. This paper examines the causal effect that automation induces on political costs for the local government. By combining the national individual-level panel data of political trust with the prefecture-level robot exposure rate in China, we find that the development of automation would reduce individuals' political trust in the Chinese local government. Furthermore, we explore the channels through which the automation process could affect political trust, namely the risk of unemployment, intensified pessimism about local government, higher downside risk, and declining organization participation. This paper provides empirical evidence for the impact of automation and the source of political legitimacy, emphasizing the crucial role of governments in coping with technological progress and making good use of endogenous creative destruction. [Display omitted] [ABSTRACT FROM AUTHOR]

Entrepreneurial action can be directed toward identifying, generating, and exploiting potential business opportunities that can cause harm to others. Over and above the "rules of the game" of the economic system, we theorize on destructive entrepreneurial actions that result from entrepreneurs' impaired regulation of their decision making. Specifically, we build on the entrepreneurial action literature and draw on regulation theories of goal attainment and moral disengagement to develop an impaired-regulation model of destructive entrepreneurial actions. This model contributes to the entrepreneurship literature by providing new insights into (a) why some entrepreneurs are more susceptible to engaging their ventures in destructive entrepreneurial actions, (b) everyday entrepreneurs (the "who") engaging in destructive entrepreneurial actions (i.e., the "how" and "why"), and (c) when and why some entrepreneurs respond to their destructive entrepreneurial actions by becoming repentant do-gooders while others grow into serial offenders. [ABSTRACT FROM AUTHOR]

This article aims to demonstrate how a market exposed to a catastrophic event strives to find a balance between adaptation and mitigation policies through R&D strategies. Our analysis reveals that, within our framework, there exists no trade-off between adaptation and mitigation. Rather, the critical relationship exists between adaptation and pollution because adaptation (wealth accumulation) increases the growth rate of the economy, leading to a higher flow pollution due to the scale effect. We also investigate the long-run effects of pollution taxes on growth rates and the influence of the probability of catastrophic events on these outcomes. Our findings suggest that even with a higher likelihood of catastrophe, the economy can elevate its R&D endeavors, provided that the penalty rate stemming from an abrupt event remains sufficiently high and the economy confronts a risk of a doomsday scenario. Additionally, we illustrate that pollution taxes can foster heightened long-term growth, with the positive effects being more pronounced when the probability of catastrophe is elevated, assuming an adequately substantial penalty rate. Finally, we find that pollution growth can be higher with less polluting inputs due to a scale effect, a phenomenon akin to the Jevons-type paradox. • The article analyzes the impact of the probability of harmful events on the creative destruction rate. • The harmful event probability may enhance economic growth if knowledge accumulation from R&D sufficiently reduces damages. • The effect of a green tax imposed by a regulator on the growth rate is also examined. • Pollution growth can be higher with less polluting inputs due to a scale effect, a phenomenon akin to the Jevons-type paradox. [ABSTRACT FROM AUTHOR]

The present study unveils the significance of the cultural and artistic phenomenon known as the "School of Ukrainian Monumentalism" in the evolution of Ukrainian fine arts. It characterizes the worldview, cultural, aesthetic, and artistic inspirations that contributed to the formation of the original, synthetic, and monumental artistic style of Ukrainian painting by Mykhailo Boichuk and his students. Furthermore, it explores how this style was further reflected in fresco compositions created between 1919 and 1935. The article explores the institutional aspects of the school's activity and the transmission of professional experience across generations of artists. Drawing on archival materials and preserved photo reproductions, we reconstruct the formation of creative ideas and the contributions of figures such as Timofii Boichuk, Mariia Trubetska, Vasyl Sedliar, Oksana Pavlenko, Kateryna Borodina, Antonina Tsimlova, Antonina Ivanova, Kyrylo Hvozdyk, Mykola Rokytskyi, Manuel Shechtman, Maria Yunak, Onufrii Biziukov, and Oleksandr Dovzhenko. The article also underscores the tragic fact of the destruction of the creative work of the "School of Ukrainian Monumentalism" at the end of the 1930s. [ABSTRACT FROM AUTHOR]

Based on a review of 700+ peer-reviewed articles since 1990, identified using text mining methodology and supervised machine learning, we analyze how neo-Schumpeterian growth theorists relate to the entrepreneur-centered view of Schumpeter Mark I and the entrepreneurless framework of Schumpeter Mark II. The literature leans heavily toward Schumpeter Mark II; innovation returns are modeled as following an ex ante known probability distribution. By assuming that innovation outcomes are (probabilistically) deterministic, the entrepreneur becomes redundant. Abstracting from genuine uncertainty, implies that central issues regarding the economic function of the entrepreneur are overlooked such as the roles of proprietary resources, skills, and profits. [ABSTRACT FROM AUTHOR]