Nobel Prize in Economic Sciences Awarded for Work on Economic Growth through Innovation and Technological Progress

Three economists, Joel Mokyr, Philippe Aghion, and Peter Howitt, have been awarded the Nobel Prize in economic sciences for their groundbreaking work on economic growth through innovation and technological progress. The Royal Swedish Academy of Sciences recognized their contributions to understanding the mechanisms behind sustained economic growth, with a focus on the role of scientific explanations, societal openness to new ideas, and creative destruction in driving innovation. The prize is split between Mokyr and the team of Aghion and Howitt, who will each receive $585,000.

Key Takeaways:

• Joel Mokyr was awarded half of the $1.17 million prize for his work using historical evidence to explain the relationship between innovation and sustained economic growth, emphasizing the importance of scientific explanations for innovations to work.
• Mokyr's research showed that prior to the industrial revolution, humans lacked understanding of why innovations worked, making it difficult to build upon new discoveries and inventions.
• The Nobel Committee highlighted the importance of society being open to new ideas and allowing change, a concept that Mokyr emphasized in his work.
• Philippe Aghion and Peter Howitt, the other half of the prize, have worked on the mechanisms behind sustained economic growth, creating a model for creative destruction, where an advanced product enters the market and pushes out older versions, potentially blocking innovation.
• The laureates' work demonstrates that economic growth cannot be taken for granted and requires upholding the mechanisms that underlie creative destruction to prevent stagnation.
• Aghion is a professor at Collège de France, INSEAD, and the London School of Economics, while Howitt is a professor at Brown University.

Statistics:

• The Nobel Prize in economic sciences was awarded to three economists, with a total value of $1.17 million, split between Mokyr's work and the joint prize for Aghion and Howitt.
• The prize money is $585,000 for each laureate, with the total value of the prize money being $1.17 million.
• The Royal Swedish Academy of Sciences recognized the laureates for their work on economic growth through innovation and technological progress.

Sources:

• UPI, Danielle Haynes, Oct. 13 - The original article announcing the Nobel Prize in economic sciences award for 2023.