It occurs when a new entry into a market centering on a new or innovative technology creates growth in that market at the expense of established companies in that market.
Incidences of this phenomenon create the divisions in a construct named for Freeman, Perez, and another thinker, while it was first described following an analysis of Kondratiev's long-wave cycles. An example of this concept in action was the rise in popularity of personal computers and subsequent fall of mainframe computer giant Digital Equipment Corporation. It occurs when a new entry into a market centering on a new or innovative technology creates growth in that market at the expense of established companies in that market. First coined in Capitalism, Socialism and Democracy, it has been referred to as its originator's namesake "Gale." FTP, name this process central to the theories of endogenous growth and evolutionary economics, created by Joseph Schumpeter.
Incidences of this phenomenon create the divisions in a construct named for Freeman, Perez, and another thinker, while it was first described following an analysis of Kondratiev's long-wave cycles.
Creative Destruction