Schumpeter's theory of creative destruction, the pattern of economic development in and after the Corona crisis

Today, confronting the human-caused and natural hazards are inevitable, thus the best measure to be taken is the accumulation of resources and productivity management. The current study aimed at introducing an exhaustive model using presented frameworks in creative destruction theory to prevent businesses’ weakness, to make them more dynamic, and to use rural resources in economic in favor of regional and rural development. Creative destruction is seen as the beginning of modern economic growth which is based on inevitable by-products in the innovation and development process, and acceptance of free trade and infrastructures of a knowledge-based economy. Schumpeter’s creative destruction includes periods including “ pre-destruction”: when there is a need for evolution because of the inefficiency of the current structures. “destruction” period: when the presented innovation enters the market and destroys the old structure. “creativity” period: innovation makes the organization more dynamic than before, and at the end “ continuous development”: innovation converts into a permanent flow described in the model. This is developmental research. The data were collected using national authentic documents. The data were analyzed using the descriptive-analytical method. The proposed model corresponds to the current condition of Iran. Results showed that the signs of Schumpeter's theory can be seen in the economy of Iran. It seems Iran is in the “ pre-destruction” period and there are some signs of “ destruction” period. The obtained model for activating rural forces and defining the kind of relationship and cooperation of large economic units corresponds with rural resources, economic conditions, and rural regions. For going through primary periods of the model and reaching developmental periods, creative framework, and entrepreneurial economy of Schumpeter's theory help problems to be recognized and make programs consistent.