Nobel Economics Prize Awarded to Joel Mokyr, Philippe Aghion, and Peter Howitt

The three economists, Joel Mokyr, Philippe Aghion, and Peter Howitt, have been awarded the 2025 Nobel economics prize in economic sciences for their work on understanding innovation-driven economic growth. According to the Royal Swedish Academy of Sciences, their research has explained how innovation provides the impetus for further progress. Mokyr's work identified the prerequisites for sustained growth through technological progress, while Aghion and Howitt developed the theory of sustained growth through creative destruction. The award is a recognition of their contributions to understanding the mechanisms behind sustained economic growth, which has lifted vast numbers of people out of poverty over the last two centuries.

Key Takeaways:

• Joel Mokyr was awarded one half of the prize for identifying the prerequisites for sustained growth through technological progress, using historical sources to uncover the causes of sustained growth becoming the new normal.
• Mokyr emphasized the importance of scientific explanations for why innovations work and societal openness to new ideas and change.
• Philippe Aghion and Peter Howitt were jointly awarded the other half of the prize for the theory of sustained growth through creative destruction.
• Aghion and Howitt developed a mathematical model, as stated in their 1992 article, which explained the process of creative destruction and the loss of companies selling older products due to new and better products entering the market.
• The laureates' work has demonstrated the importance of innovation in driving economic growth and lifting people out of poverty.
• Mokyr, Aghion, and Howitt were recognized for their contributions to understanding the mechanisms behind sustained economic growth, laying the foundation for our prosperity.
• The three laureates are currently professors at various universities, including Northwestern University, College de France, INSEAD, Brown University, and Harvard University.

Statistics:

• Over the last two centuries, the world has seen sustained economic growth, lifting vast numbers of people out of poverty.
• The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel was awarded to Joel Mokyr, Philippe Aghion, and Peter Howitt "for having explained innovation-driven economic growth".
• The Prize is known as 'The Sveriges Riksbank Prize in Economic Sciences' and is awarded annually by the Royal Swedish Academy of Sciences.

Sources:

• The Nobel Prize (@NobelPrize) October 13, 2025
• The Nobel Academy (Statement)
• Royal Swedish Academy of Sciences (2025 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel)
• Indian National Press (Bombay) Pvt. Ltd. (2025)