Such a development may be viewed as the impact of the world's economic structure that is undergoing a rapid wave of technological transformation along with economic growth, from being based on natural to human resources, from the era of the genetic and extractive to the age of manufacture and information services as well as the latest developments entering the creative economy era. However, the creative economy concept is apparently not an entirely new one on its own. Implied in his 1911 classical treatise through Theorie der Wirtschaftlichen Entwicklungen (the Theory of Economic Development), Joseph Schumpeter proposed a theory of creative destruction. The theory states that new enterprises with an entrepreneurial spirit are bound to appear and replace their older, less innovative counterparts.
This phenomenon is further directing the dynamics of the business world to a higher economic growth. Perhaps what makes it different this time is that the concept of the creative economy appears as more explicit and well-defined, marking a new era of civilization. In addition, the creative economy is in fact the primary phenomenon and trending alternative, especially in contributing to the global economic growth in this third millennium.
John Howkins defines the creative economy as an economic activity in which ideas are both the input and output. In a short sentence, the essence of creativity is the idea. Presumably, both the concept of entrepreneurship and that of the creative economy share the same common thread, which contains the concept of creativity, ideas, notions and innovation.
Creativity is the process of thinking and driving inspiration in a manner different from normal, where someone is challenged to become capable of producing a new discovery, both in the forms of ideas or real work which is relatively disparate from what already exists. Creativity in doing business, after all, concerns the way one applies creativity to the work being done in order to encourage new products, procedures and structures while improving the way one works toward the better. What businesses require is the application of a creative process to the problems, issues, and opportunities that are currently existent.