Abstract: “Joseph Schumpeter Trap”refers to the disappearance of innovation impetus. How to surmount“Joseph Schumpeter Trap”is a puzzle to be solved urgently during the process of the development of modern society and economy. On the basis of focusing on M&A accounting changes and the lessons learned and analyzing the reality of social and economic development in the 20th century, this paper reveals the background of the accounting system formed by Joseph Schumpeter innovation and the Joseph Schumpeter Trap. It holds that a feasible choice to astride“Joseph Schumpeter Trap”is to perfect the M&A goodwill accounting system, making it truly reflect a healthy interactive and symbiotic relationship between accounting and economics, so as to ensure the unity of value creation and real economy development.

Key words: Joseph Schumpeter Trap, economic development, creating new combinations, M& A, nature of accounting discipline