Nobel Prize in Economics 2025 Awarded to Innovators in Economic Growth
The 2025 Nobel Prize in Economics has been awarded to three researchers for their contributions to innovation-driven growth: Joel Mokyr, Philippe Aghion, and Peter Howitt, the Royal Swedish Academy of Sciences announced in Stockholm on Monday, marking the conclusion of this year’s Nobel Prize season, reports 24brussels.
Joel Mokyr, a Professor at Northwestern University and the Eitan Berglas School of Economics at Tel Aviv University, received half the prize for his research into the prerequisites for sustained growth through technological advancement. His historical analysis illustrates the reasons behind the prevalence of economic growth in recent centuries, emphasizing the role of scientific knowledge and society’s receptiveness to innovation and change.
Philippe Aghion, based at the Collège de France in Paris, and Peter Howitt, a professor at Brown University in the US, were jointly awarded the other half of the prize for their development of the theory of sustained growth through “creative destruction.” Their influential work, which includes a 1992 mathematical model, outlines how the introduction of new, superior products can lead to losses for older businesses. They emphasize the importance of managing this process to ensure that established companies do not hinder innovation to protect their interests.
John Hassler, chairman of the committee awarding the Nobel Prize in Economics, stated, “The laureates’ work shows that economic growth cannot be taken for granted. We must support the mechanisms underlying creative destruction so that we do not fall back into stagnation.”
The prize is endowed with 11 million Swedish kronor (approximately €1 million) and is sponsored by the Swedish Central Bank, unlike the original Nobel Prizes. The award ceremony is scheduled for December 10. Last week, winners in categories including medicine, physics, chemistry, literature, and peace were also announced.
