Creative destruction theory is essentially an argument that profit potential within a noncompetitive industry creates an incentive for new types of competing industry, thereby strengthening the original industry's market power.

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Creative destruction theory, proposed by Joseph Schumpeter, suggests that innovation by entrepreneurs within a competitive industry leads to the demise of outdated businesses, products, or technologies, thereby fostering new growth and leading to economic development, rather than strengthening the original industry's market power.

Creative Destruction Theory Is Essentially an Argument That Profit Potential