The Economics of Creative Destruction: New Research on Themes from Aghion and Howitt

Economists analyze the roles of creative destruction in addressing inequality, stagnant growth, rents, the environment, and the COVID-19 pandemic. The book "The Economics of Creative Destruction" brings together social scientists and theorists to consider how ideas about creative destruction can help solve these problems. The concept of innovation as creative destruction is foundational in economics and has implications for monopoly and inequality, the social safety net, climate change, and regulation.

Format: Hardback
Length: 784 pages
Publication date: 29 September 2023
Publisher: Harvard University Press

In a world grappling with pressing political and social challenges, including rising inequality, stagnant growth, accumulating rents, environmental degradation, and the devastating impact of the COVID-19 pandemic, economists are delving into the roles of creative destruction in addressing these critical issues. The concept of innovation as creative destruction, first introduced by Joseph Schumpeter and further formalized by Philippe Aghion and Peter Howitt in the 1990s, has gained significant traction in economics, permeating almost every aspect of the discipline. As we navigate a period of rapid and disorienting change, it is an opportune moment to bring together the diverse strands of research in this field to assess what has been learned and continue an intellectual project that can inform economic decision-making in the years to come.

The cutting-edge work featured in The Economics of Creative Destruction delves into the realms of innovation and growth, offering insightful perspectives on monopoly and inequality, the nature of the social safety net, climate change, and the dynamics of regulation. Contributors shed light on these complex topics, suggesting that governance plays a crucial role in maximizing the benefits of capitalism while minimizing its risks.

In the face of inequality rising, growth stagnating, rents accumulating, and the environment suffering, the COVID-19 pandemic has exposed the vulnerabilities of global capitalism. How can we restart growth? Can our societies be made fairer? Editors Ufuk Akcigit and John Van Reenen have assembled a world-leading group of social scientists and theorists to explore these questions and, in particular, how ideas about the economics of creative destruction can help solve the problems we face.

The concept of innovation as creative destruction has become foundational in economics, reaching into almost every corner of the discipline, both theoretically and empirically. Now, as we navigate a period of rapid change, it is essential to consolidate our knowledge and continue an intellectual project that can shape economic decision-making for decades to come.

The Economics of Creative Destruction serves as a valuable resource for economists, policymakers, and anyone interested in understanding the complex dynamics of innovation, growth, and governance. By bringing together leading experts from diverse fields, this book offers a comprehensive examination of the challenges we face and provides insights into potential solutions.

In conclusion, the idea of innovation as creative destruction has gained significant traction in economics, offering a framework for understanding the dynamics of change and the potential for positive transformation. As we navigate a period of rapid and disorienting change, it is crucial to consolidate our knowledge and continue an intellectual project that can inform economic decision-making and shape a more equitable and sustainable future.

Dimension: 235 x 156 (mm)
ISBN-13: 9780674270367