Creative destruction is an economic concept introduced by Joseph Schumpeter that describes the process by which new innovations replace outdated technologies and business models. This cycle of innovation leads to the decline of established companies and industries, making way for new ones that can better meet consumer needs. While creative destruction can result in job losses and economic disruption in the short term, it ultimately drives progress and growth. As new products and services emerge, they create opportunities for entrepreneurs and can lead to increased efficiency and improved quality of life for consumers.