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Creative Destruction, Creative Accumulation and Innovation Regime

Compare and contrast the regimes of creative destruction and creative accumulation. Explain why examining the innovation regime is important for entrepreneurs when determining whether or not to enter an industry.

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The response addresses the queries posted in 626 words with references.

//Constructive destruction, constructive accumulation and innovation regime are the new concepts that have been increasingly used by today's businesses. The similarity and differences between constructive destruction and accumulation have been focused and at last, importance of innovation regime for entrepreneurs while entering or exiting from the market has been laid down.//

The term Constructive destruction was first introduced by Australian School economist Joseph Schumpeter in the year 1942. Creative destruction arises when some new skills are brought in the market while killing the old ones. An apt example of creative destruction is the music systems. Schumpeter has analyzed that the idea of creating destruction is the vital fact about capitalism. In the modern era and with the changing and upcoming new innovative technology all the CEO's are having a word about how creative destruction has replaced the old wealth with the new one (Cowen, 2004). Whereas, creative accumulation defines the vision activity ...

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The response addresses the queries posted in 626 words with references.