2025 Nobel Prize in Economics Awarded to Frenchman Philippe Aghion, Israeli-American Joel Mokyr, and Canadian Peter Howitt

The 2025 Nobel Prize in Economics has been awarded to three distinguished economists: Philippe Aghion from France, Joel Mokyr, an Israeli-American, and Canadian Peter Howitt. The award recognizes their foundational contributions to the understanding of economic growth driven by innovation and the concept of “creative destruction.”

About the Laureates

• Philippe Aghion: A French economist recognized for his work on growth theory.
• Joel Mokyr: An Israeli-American who identified conditions necessary for sustainable economic growth through technological progress.
• Peter Howitt: A Canadian economist known for his theories on growth and innovation.

The Significance of Their Work

The Nobel Committee commended Mokyr for pinpointing vital conditions that promote long-term growth through technological advancements. Both Aghion and Howitt were honored for their theory on growth that emphasizes the role of creative destruction—where new innovations replace outdated technologies, enhancing productivity and prosperity.

Kerstin Enflo, a Nobel Committee member and historian, articulated the importance of their findings, stating that society must remain vigilant about the factors enabling economic growth, particularly scientific innovation and an openness to change.

Concerns for Europe

Philippe Aghion voiced concerns regarding Europe’s competitive position, especially in light of the United States increasing tariffs. He cautioned against allowing the U.S. and China to surpass Europe in technological leadership.

Aghion highlighted the widening wealth gap between the U.S. and the Eurozone since the 1980s. He attributed this to Europe’s failures in implementing significant technological innovations, noting that the needed infrastructure and financial ecosystem to foster high-tech innovation were lacking.

A Financial Reward

The Nobel Prize in Economics includes a diploma, a gold medal, and a financial award of 11 million Swedish kronor (approximately one million euros). The prize is distributed, with Mokyr receiving half and Aghion alongside Howitt sharing the other half. The official award ceremony will take place on December 10, coinciding with the anniversary of Alfred Nobel’s death.

Recent Nobel Prize History

In 2024, the Nobel Prize in Economics honored American researchers Daron Acemoglu, Simon Johnson, and James A. Robinson for their studies on inequality across nations and democracy’s role in economic growth. The economics prize was established separately in 1969 and is traditionally awarded at the end of the Nobel season, which commenced this year with the medicine award on October 6 and concluded with economics on October 13, 2025.