By this he meant the process of innovative thinking that is essential for good business and customer satisfaction. We all appear to have a desire for new, fashionable, interesting products. It seems to be a part of human nature to desire “newness”, and Schumpeter understood this completely.
His work introduced much of the literature on entrepreneurship and also on innovation and both of these topics give us a clearer understanding of the nature, function, and desirability of business. Try to imagine a world in which there was no innovation, a world in which products did not change in design or functionality. Schumpeter started our thinking probably more so than we give him credit.
