2025 Nobel Prize in Economics Celebrates Innovation-Driven Economic Growth

The 2025 Nobel Prize in Economics was awarded to Joel Mokyr, Philippe Aghion, and Peter Howitt for their significant contributions to understanding innovation-driven economic growth.

Winners of the 2025 Nobel Prize in Economics

Joel Mokyr, an American-Israeli economist, received half of the prize. He is recognized for identifying the essential conditions for sustainable growth fueled by technological progress. The other half of the award was jointly given to Philippe Aghion and Peter Howitt for their work on the concept of creative destruction in economic theory.

Recognizing Impactful Research

• Joel Mokyr: Professor at Northwestern University, 79 years old.
• Philippe Aghion: French economist, 69 years old.
• Peter Howitt: Canadian economist, 79 years old.

Mokyr utilized historical data to explore the roots of consistent economic growth, which has become a new standard. Aghion and Howitt’s research focused on how the arrival of new and superior products disrupts existing markets, leading to the decline of older products.

Prize Amount and Significance

The total prize money of 11 million Swedish kronor, equivalent to approximately 930,000 francs, will be shared among the laureates. Kerstin Enflo, an economic history professor and Nobel Committee member, emphasized the importance of continuous vigilance regarding the factors that foster and sustain economic growth.

Key Factors for Economic Growth

The findings of the laureates serve as a reminder that societal progress should not be taken for granted. Key elements supporting economic advancement include:

• Scientific innovation
• Creative destruction
• An adaptable society open to change

The insights from this year’s Nobel laureates underscore the dynamic relationship between innovation and economic prosperity, marking a significant acknowledgment of their work in the field.