Couple of thoughts:
*Looks like the tree is closer to the curb that it is your driveway. Is the curb similarly damaged? (doesn't look like it from the picture. My point is bad construction is often more at fault than the tree...in inadequate base and thin layer of concrete may be the real culprit here)
*How recently was that retaining wall built up? If that was added and filled with soil after the tree was planted, it is not unlikely that the tree is going to suffer long-term from that added soil around its trunk.
*It would be good to see how many roots are under the slab...how much of the tree's root system will be removed to replace the driveway?
Now...onto your original question:
--Yes, concrete and trees CAN co-exist!
--That tree is far enough away that it shouldn't be causing problems.
--As mentioned above: good base and thick enough top
Tom Smiley has some good research about trees and sidewalks. Here is one publication:
https://www.bartlett.com/resources/Sidewalk-Repair-Near-Trees.pdf
There is a more technical article here:
http://joa.isa-arbor.com/articles.asp?JournalID=1&VolumeID=34&IssueID=3
The article is titled "Comparison of Methods to Reduce Sidewalk Damage from Tree Roots"