April 2, 2007


Creative Destruction--for the Environment: Clean-tech companies, mostly small entrepreneurial businesses, pose a challenge to many large, long-dominant industrial enterprises (Byron Kennard, 4/02/07, Business Week)

Ecology teaches us that forest fires can be a form of creative destruction. Fires create openings in the forest canopy that allow sunlight to reach smaller plants. This stimulates ecosystem diversity. Burning also enriches the soil by depositing calcium, potassium, phosphorous, and other minerals.

In economics, creative destruction is the process by which entrepreneurs introduce innovations that force established businesses to adapt or die. The phrase was coined by the eminent economist Joseph Schumpeter (1883-1950), who believed that long-term economic growth is sustained by radical innovators, even as they destroy the value of large dominant firms.

This analogy is fitting: By mimicking nature, the economy serves it. Just as fires renew the forest, creative destruction renews the economy.

Today radical innovators working in alternative energy, water treatment, sustainable agriculture, construction, manufacturing, and transportation are beginning to offer products that promise dramatic reductions in energy consumption, pollution, and waste. These upstart clean-tech companies--mostly small entrepreneurial businesses--pose a challenge to many large, long-dominant industrial enterprises.

...it's all about the firestarters and windowbreakers...

Posted by Orrin Judd at April 2, 2007 12:00 AM

Having just returned from Hurricane Ravaged Florida, I can attest to the benefits of "creative destruction."

They are advertising for Jobs in the trades and providing training for up to 80 trades. Though there has been overbuilding of Condos, the hurricanes wiped clean the worst of the housing stock, and the rebuilding of roofs, docks, & misc. is behind schedule.

Buy some tools, throw them in the trunk, and move to the panhandle. In 5-10 years, you'll be a millionaire.

(BTW, I predicted this)

Posted by: Bruno at April 2, 2007 9:50 AM

Everything has about stopped in this area of Florida which was the fastest growing county in the U.S. for the past several years. A lot of the potential millionaires wildly overextended are now facing financial ruin.

Posted by: erp at April 2, 2007 1:49 PM
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