Nobel Laureates Mokyr, Aghion, and Howitt Illuminate Paths to Sustained Economic Growth through Innovation

The 2025 Nobel Prize in Economics was awarded to Joel Mokyr, Philippe Aghion, and Peter Howitt for their groundbreaking research into innovation's role in driving sustained economic growth. The Royal Swedish Academy of Sciences highlighted their development of a theoretical and empirical framework that demonstrates how creativity, technological advancement, and research transform economies and elevate living standards (101064).

Mokyr’s work brings a historical and cultural lens, particularly focusing on the Industrial Revolution's dissemination of scientific knowledge, while Aghion and Howitt contributed an endogenous growth model emphasizing innovation’s centrality. Philippe Aghion elaborated on the concept of "creative destruction," originally proposed by Joseph Schumpeter, which describes how innovation disrupts outdated economic structures to foster continuous growth. He stressed new talents and competition as crucial drivers and urged Europe to bolster innovation to counteract protectionist threats and economic stagnation (101067, 101063).

Aghion also noted concerns about U.S. tariffs as obstacles to growth and highlighted his plans, along with Howitt, to allocate half of their prize money toward a research lab focusing on green growth and artificial intelligence. The 11 million Swedish crowns prize (approximately 994,410 euros) emphasizes the relevance of their insights amid global discussions on productivity, sustainability, and economic policy (101063, 101064).

Their collaborative research reshapes understanding of how technological progress leads to stable and inclusive economic advancement, providing vital guidance for governments designing innovation policies. As Aghion pointed out, vigilance is needed against stagnation risks, with innovation being indispensable to sustaining prosperity (101067).