Economy & Business, Volume 17, 2023

Резюме: The influence of creative destruction on business activity and economic development is enormous. In the era of speedy innovations and technological progress it contributes to the overall process of transformation of economic activities. Meanwhile, creative destruction challenges also the social dimension by destroying obsolete jobs and creating new ones. The major challenge for countries with low levels of innovation is to manage to implement the requisites of creative destruction and increase the levels of innovation while at the same time balance the income levels in specific regions. This can be done through developing mechanisms for increasing skills and the acquisition of new competencies among the local population. Regional development plans need to envisage the implementation of innovations in parallel to the education of the human resource. This paper discusses the main factors, contributing to inequality as a result of creative destruction and explains the importance of increasing education, skills and qualification levels.