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

Despite most of human history being characterized by little economic growth, sustained economic growth driven by technological innovations has become the norm over the past two centuries. The Nobel Memorial Prize in Economic Sciences was awarded to Joel Mokyr of Northwestern University, Philippe Aghion of INSEAD and the London School of Economics, and Peter Howitt of Brown University for their work on innovation driving economic growth. Their research explains the relationship between technological progress and sustained economic growth that has improved living standards, health, and quality of life for people around the world.

Key Takeaways:

• The Nobel Memorial Prize in Economic Sciences was awarded to Joel Mokyr, Philippe Aghion, and Peter Howitt for their work on innovation driving economic growth.
• The three economists shared the prize for research that explains the relationship between technological progress and sustained economic growth.
• Sustained economic growth, driven by a continuous stream of technological innovations and improvements, has replaced stagnation over the past two centuries.
• Mr. Mokyr's work emphasizes the importance of society being open to new ideas and allowing change for innovations to succeed and become a self-generating process.
• Mr. Aghion and Mr. Howitt's work, known as "the theory of sustained growth through creative destruction," built a mathematical model for growth with creative destruction as a core element.
• Their work shows how economic growth can continue despite companies being sidelined by the innovation of other firms.
• The laureates' work suggests that policymakers can design research and development policies using their theory of sustained growth through creative destruction.
• Mr. Aghion warned against protectionism and tariffs that obstruct growth and currently gaining traction, and encouraged openness as a driver of growth.

Statistics:

• Two centuries ago, sustained economic growth driven by technological innovations became the norm.
• Sustained economic growth has improved living standards, health, and quality of life for people around the world.
• The Nobel Memorial Prize in Economic Sciences was awarded to Joel Mokyr, Philippe Aghion, and Peter Howitt in 2025 (as announced by The Royal Swedish Academy of Sciences).

Sources:

• "Nobel Prize in Economics Awarded to Joel Mokyr, Philippe Aghion, and Peter Howitt," The New York Times.
• "Nobel Memorial Prize in Economic Sciences, Royal Swedish Academy of Sciences, 2025.
• "The Nobel Prize in Literature," The New York Times.
• "The Nobel Peace Prize," The New York Times.