“The theory of natural selection is grounded on the belief that each new variety, and ulimtately each new species, is produced and maintained by having some advantage over those with which it comes into competition; and the consequent extinction of less favoured forms almost inevitably follows.”

Source: Elizabeth Kolbert (2014) The Sixth Extinction

The concept of creative destruction – in a roundabout way, just like natural selection – is similarly concerned with a constantly changing population, but of businesses and industries instead of species and organisms.

Creative destruction refers to the process by which old industries and firms, which are no longer profitable, close down and enable those resources (capital and labour) to move into more productive processes, creating new firms and industries.