International News: The 2025 Nobel Memorial Prize in Economic Sciences has been awarded to Joel Mokyr, Philippe Aghion, and Peter Howitt for their groundbreaking work on innovation and economic growth. The Royal Swedish Academy of Sciences spoken the ribbon on October 13, marking the final Nobel prize of this year. The Nobel committee said that, the three economists were recognised “for having explained innovation-driven economic growth.” One half of the prize was awarded to Joel Mokyr “for identifying the conditions needed for sustained growth through technological progress,” while the other half was shared by Philippe Aghion and Peter Howitt “for the theory of sustained growth through creative destruction.”
Joel Mokyr’s Research on Growth
Joel Mokyr, a Dutch-Israeli-American economic historian at Northwestern University, studied history to understand how societies moved from stagnation to continuous economic progress. His research showed that technological progress lasts only when innovations are supported by a culture that values knowledge, experiments, and openness to new ideas. Mokyr unfluctuating the industrial revolution to a time when Europe became increasingly curious and unsuspicious of new ideas. He said innovation works weightier when people not only know how things function but moreover understand why they work. This understanding allows societies to build on older discoveries and protract progressing over generations.
Aghion and Howitt’s Theory of Creative Destruction
Philippe Aghion from the Collège de France and Peter Howitt from Brown University were recognized for their theory of “creative destruction.” Their 1992 paper created a model showing that economic growth happens when new innovations replace old technologies and products. Inspired by economist Joseph Schumpeter, Aghion and Howitt formalized the idea mathematically. Their research showed that progress involves both megacosm and loss—new companies and technologies towards while older ones disappear. This sometimes disruptive process encourages ongoing innovation and competition, helping long-term growth.
Why Their Work Matters
The Nobel committee said the trio’s research helps economists and policymakers understand the causes of economic growth. Their ideas influence how governments support innovation, regulate markets, and wastefulness old industries with new opportunities. Creative destruction is now used to explain how technological changes, like strained intelligence, renewable energy, and biotechnology, reshape economies. Mokyr’s historical studies show how culture and institutions determine whether societies winnow or resist such changes.
About the Nobel Prize in Economics
The prize, officially tabbed The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, was created in 1968 by Sweden’s inside wall to honor Alfred Nobel. It is not one of the original Nobel prizes but is awarded slantingly them each year on December 10, the day Nobel died. Since it started, the economics prize has been given 56 times to 96 winners. Last year, in 2024, it went to Daron Acemoglu, Simon Johnson, and James A. Robinson for studying why some countries are rich and others poor. They found that countries with unshut institutions grow faster and create increasingly wealth for their people. The 2025 economics ribbon closes this year’s Nobel season. Prizes in medicine, physics, chemistry, literature, and peace were spoken older in the week.
