The phrase “creative destruction” was made famous by the economist Joseph A. Schumpeter. For Schumpeter, creative destruction “is the essential fact about capitalism” (Schumpeter, 1975 [1942]: 82) and is meant to highlight the dynamic nature of capitalist systems. In particular, it refers to how capitalism continuously revolutionizes itself as new products and business processes are created that render obsolete or simply destroy existing ones – as, for example, the creation of the automobile lead to the destruction of the horse and buggy industry. In other words, this concept stresses that the dynamic nature of capitalism stems from the dialectical relationship between creation and destruction. There are two important aspects of creative destruction that should be kept in mind.