Creative destruction, institutional efficiency, and economic development
the use of disruptive technologies in the judiciary
DOI:
https://doi.org/10.12662/2447-6641oj.v24i45.5890.pe5890.2026Keywords:
creative destruction, institutional efficiency, economic developmentAbstract
Context: Law and Economics maintain an interdependent relationship, particularly with regard to the role of institutions in promoting economic development. In this context, the Judiciary plays a strategic role by influencing the predictability, transaction costs, and legal certainty of economic relations, while being directly affected by processes of technological modernization.
Goal: To analyze the concepts of creative destruction, institutional efficiency, and economic development in light of the theories of Joseph Schumpeter and Douglass North, and to examine how the incorporation of disruptive technologies within the Judiciary can promote institutional changes oriented toward efficiency and economic development.
Method: This study adopts a bibliographic and analytical approach, based on a review of legal and economic literature, especially the works of Schumpeter and North, as well as contemporary studies on Law and Economics and the modernization of the Judiciary. The deductive method was employed to apply general theoretical concepts to the institutional reality of the Judiciary.
Results: The findings indicate that efficient judicial institutions reduce transaction costs, increase the predictability of decisions, and strengthen legal certainty—factors that are essential for economic development. The introduction of disruptive technologies, such as artificial intelligence, has driven processes of institutional reorganization, contributing to the mitigation of judicial delays and to improvements in the efficiency of judicial performance.
Conclusions: It is concluded that the modernization of the Judiciary can be understood as a process of creative destruction, in Schumpeterian terms, by replacing obsolete practices with innovative solutions. In light of North’s institutional theory, such transformations strengthen the institutional environment and foster economic development by reducing uncertainty and promoting greater institutional efficiency.
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Copyright (c) 2026 Weisley Smith Vieira da Silva, Italo Farias Braga
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