Innovation consequences: Schumpeter's phrase "the gales of creative destruction"

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The question wants you to critically evaluate Schumpeter's phase "the gales of creative destruction" and with relative theories discuss the notion of the learning organization.

There are some assumptions that the question makes. First, the question is assuming that the economic theory of the 30s and 40s is applicable today. This is not supported by evidence and there has been a lot of current research done that relates to the realities of today. Second, Schumpeter's theory was greatly influenced by the concepts of capitalism. However, these concepts or even the capitalism described in literature is not found in today's economy. Thirdly, the theory under question was written is a time where the pace of innovation was very different from what it is today represents a different context and a different perspective. However, the question presupposes that the theory which belongs to a different era be applied to circumstances of today. Fourthly, the question never mentions how it differentiates between a learning organization and another, we can use a cliché and say that Microsoft is a learning organization, but in reality there is no organization, which is not a learning organization. Its survival depends on learning1

Given below is a template to help with answering your question.

CONSEQUENCES OF INNOVATION IN THE 21ST CENTURY
1. Innovation is sine qua non for business in the 21st century. It needs to be continuous and has to be active to sustain a business as well as to ensure that the business grows.
2. In industries, which are typically 21st century industries like the computer software industry, innovation is the basis of survival. Even a deceleration in innovation can prove to be disastrous for the company
3. Innovation is not limited to the product but also extends to other functions like the production process (which can now be patented), marketing strategies, personnel policies, financial instruments, and administration.
4. In general organizations in every field not merely business need a degree of innovativeness. For instance schools are innovative and so are hospitals.
5. Innovativeness is not an option but is a necessity in the 21st century.

Please see this reference:

Indeed, if we are to build sustainable economies able to support a human population of 8bn-10bn, one inescapable conclusion is that we must destroy much of today's growth-driven economy and jettison many of the lifestyles it supports. Forget conservation; think "creative destruction".

This phrase was coined by Joseph Schumpeter, the great Austrian-American economist of the 30s and 40s. He was fascinated by the process of industrial ...