Nobel Prize Recognizes Innovation’s Role in Economic Growth
Stockholm, October 13, 2025 — The 2025 Nobel Memorial Prize in Economic Sciences has been awarded to economists Joel Mokyr, Philippe Aghion, and Peter Howitt for their pioneering work on the relationship between innovation and economic growth.
Joel Mokyr, a professor at Northwestern University, received half of the 11 million Swedish kronor prize for his historical analysis of technological progress and its role in sustained economic growth. He identified three essential conditions for sustained growth: the co-evolution of science and technology, mechanical competence, and a society open to disruption. (Financial Times)
Philippe Aghion and Peter Howitt, affiliated with the Collège de France, INSEAD, and Brown University, shared the other half of the prize for their development of the “creative destruction” model. This model explains how innovation by companies leads to economic transformation by continuously replacing old technologies and products. Their work has influenced policy, particularly regarding R&D subsidies and protections for workers affected by innovation. (Financial Times)
The Nobel Committee emphasized that their research offers critical insights into maintaining and directing economic growth to benefit society. Aghion highlighted the dangers of protectionism and deglobalization, warning they could hinder innovation and prosperity. Mokyr’s work underscores the importance of understanding the mechanisms behind technological advances, while Aghion and Howitt’s model captures the dynamic churn of economic progress. (The Washington Post)
Their combined contributions span history, culture, and mathematical modeling, offering a more holistic understanding of economic growth—especially relevant in today’s rapidly changing global economy. (The Washington Post)
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