Nobel Prize In Economics 2025 Awarded To Joel Mokyr, Philippe Aghion And Peter Howitt: Know All About Them

Nobel Prize In Economics 2025: The Nobel Prize in Economic Sciences has been awarded to Joel Mokyr, Philippe Aghion, and Peter Howitt for their research explaining how innovation drives long-term economic growth. The Royal Swedish Academy of Sciences announced the award on Monday.

According to the Nobel Committee, one half of the prize goes to Joel Mokyr “for having identified the prerequisites for sustained growth through technological progress,” while the other half is shared by Philippe Aghion and Peter Howitt “for the theory of sustained growth through creative destruction.”

Mokyr, an economic historian, explored how societies evolve through innovation and technological advancement. Using historical data, he showed that for innovations to continually succeed, societies must understand why inventions work, not just that they do. Mokyr also highlighted that societies open to new ideas and change are more likely to experience continuous growth, an idea rooted in lessons from the Industrial Revolution.

Aghion and Howitt, meanwhile, developed a mathematical model of “creative destruction” in a 1992 paper. Their theory explains that when new and better products enter the market, older ones and their producers lose out. Innovation, therefore, is both creative, as it brings new value, and destructive, as it replaces outdated technologies. Their work has become a key foundation for understanding modern economic dynamics.

Formally called the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, the award was established in 1968 by Sweden’s central bank.

Although not part of Alfred Nobel’s original five prizes, it is presented alongside them on December 10, the anniversary of Nobel’s death.

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