Activity: Creative Destruction – Build a Better Widget

NTRODUCTION

Joseph Schumpeter coined the term “creative destruction” to describe the process by which old products and processes give way to new ones. It is through this evolutionary process that economies progress and grow. In this activity, students will experience creative destruction as they create classroom inventions and then change, modify, and improve others’ inventions.

OBJECTIVES

At the completion of this activity students will be able to:

• Explain the process of creative destruction;
• Identify the costs and benefits of creative destruction;
• Explain how creative destruction leads to economic growth.

ECONOMIC CONCEPTS

Creative Destruction

Entrepreneur

Innovation