A generic lifecycle of products. In industry, product lifecycle management (PLM) is the process of managing the entire lifecycle of a product from inception, through engineering design and manufacture, to service and disposal of manufactured products.
Creative destruction refers to the incessant product and process innovation. mechanism by which new production units replace outdated ones. This. restructuring process permeates major aspects of macroeconomic performance, not only long-run growth but also economic fluctuations, structural adjustment. and the functioning of factor markets.
The longer the recession the worse this problem becomes. It is true that creative destruction is a positive force that emerges during a recession. Low productivity capital is driven out and in the recovery best-practice capital is introduced so the overall vintage of capital becomes younger and more productive.