For the past two months, Ian has been looking at the potential of a new compact solar capture technology he has developed, which would make it economically feasible for condominium owners to harness the sun on their balconies and use the generated electricity to offset the power purchased from their local electricity provider. If the business takes off, it would revolutionize the relationship between power authorities and their customers-where both sides would be power generators and clients. This process is known as ________________.

Question

Quizplus · Accepted Answer

The process described in the passage, where a new technology revolutionizes an industry or market, is known as "creative destruction." This term was coined by economist Joseph Schumpeter, who argued that capitalism constantly replaces old technologies and ways of doing things with new ones through a process of innovation and competition. In this case, Ian's new solar capture technology would disrupt the traditional relationship between power authorities and their customers, creating a new paradigm where both sides are power generators and clients.

For the Past Two Months, Ian Has Been Looking at the Potential