2025 Nobel Prize in Economics Awarded to Mokyr, Aghion, and Howitt for Pioneering Research on Innovation-Driven Growth

The 2025 Nobel Prize in Economic Sciences was jointly awarded to Joel Mokyr, Philippe Aghion, and Peter Howitt for their groundbreaking research on how technological innovation drives sustained economic growth. The Royal Swedish Academy of Sciences honored Mokyr with one half of the prize for his identification of the prerequisites for continued economic expansion through technological progress. The other half was shared by Aghion and Howitt for their joint development of the theory of "creative destruction," which explains how new and improved products replace older ones, fostering dynamic growth in economies.

Mokyr, aged 79 and based at Northwestern University, conducted historical research revealing that sustained economic growth became the norm when societies embraced new ideas and scientific understanding of innovations, an advancement that emerged around the Industrial Revolution. Aghion, 69, affiliated with the Collège de France and INSEAD, and Howitt, 79, at Brown University, formulated a mathematical model in 1992 illustrating how this creative destruction fosters cycles of innovation and economic renewal, even as it challenges established firms.

John Hassler, chair of the Nobel committee, emphasized that their work tackles fundamental questions about maintaining growth over time and the vital role of technological advancement in improving living standards and reducing poverty. Aghion highlighted contemporary challenges and stressed the importance of large markets, criticizing protectionist trade policies, specifically those of the U.S., for impeding growth by limiting competition. He also urged European nations to bolster investments in innovation to compete effectively with the U.S. and China.

The Nobel Prize in Economic Sciences, distinct from the original five Nobel Prizes, continues to recognize transformative contributions to economics. The ceremony will be held on December 10 in Oslo and Stockholm. Notably, no Spanish economist has received this award to date, although notable figures such as Manuel Arellano and Andreu Mas-Colell have been mentioned as potential future recipients.

This award underscores the critical link between innovation and economic prosperity, reinforcing the message that sustained growth requires openness to new ideas and robust mechanisms to enable technological progress and market renewal.