Creative destruction is an economic concept introduced by economist Joseph Schumpeter. It refers to the process where new innovations replace outdated technologies or products, leading to economic growth. This cycle of innovation can result in the decline of established businesses, as they struggle to compete with newer, more efficient alternatives. While creative destruction can lead to job losses in certain industries, it also creates opportunities for new businesses and jobs in emerging sectors. This dynamic process is essential for progress, as it encourages continuous improvement and adaptation within the economy, ultimately benefiting consumers with better products and services.