The 2025 Nobel Prize in Economics has been won by Joel Mokyr, Philippe Aghion and Peter Howitt. All three economists have received this honor due to their research on innovation and economic development. He has explained how innovation accelerates development.
Nobel Prize in Economics 2025: The 2025 Nobel Memorial Prize in Economics has been awarded to Joel Mokyr, Philippe Aghion and Peter Howitt. He has received this honor because of his excellent work on innovation and economic development. The Royal Swedish Academy of Sciences announced the award on Monday. This is the last award of the Nobel session in 2025.
According to the Nobel Committee, the three economists were recognized “for explaining economic growth driven by innovation.” Half of the prize was awarded to Joel Mokyr for “identifying the necessary conditions for sustainable development through technological progress.” The other half was awarded to Philippe Aghion and Peter Howitt for “Theory of Sustainable Development through Creative Destruction.”
Who is Joel Mokyr?
Joel Mokyr teaches at Northwestern University. He is a Dutch-Israeli-American economic historian. Mokyr used historical evidence to understand how societies moved from stability to self-sustaining economic growth. His research showed that technological progress is sustained only when innovation is supported by a culture that supports it.
Mokyr’s study linked the Industrial Revolution to a period when Europe became more curious and tolerant of new ideas. He has argued that innovation can only flourish when people not only know how to make things work but also understand why they work.
What work did Philippe Aghion and Peter Howitt do?
Philippe Aghion of the Collège de France and Peter Howitt of Brown University were honored for developing the theory of “creative destruction”. A model was given in their 1992 paper. It showed how economic growth occurs through a cycle in which new innovations replace old technologies and products.
Also read- Nobel Peace Prize: The White House felt some pain when Donald Trump did not get the Nobel.
The idea was originally inspired by economist Joseph Schumpeter. It was formalized mathematically by Aghion and Howitt. His work explained how progress involves both creation and loss. New companies and technologies emerge, while old companies and technologies disappear.
Also read- “You deserve it…” Trump gave a shocking statement when Maria Corina received the Nobel Prize.