Nobel Prize in Economics 2025: Joel Mokyr, Philippe Aghion, and Peter Howitt Honored for Groundbreaking Work on Technological Growth
The 2025 Nobel Prize in Economic Sciences has been awarded to American-Israeli historian Joel Mokyr, French economist Philippe Aghion, and Canadian scholar Peter Howitt for their pioneering research on how technology drives long-term economic growth. The Royal Swedish Academy of Sciences announced the prize on Monday, praising their work for reshaping how economists understand innovation, productivity, and prosperity.
Recognizing the Power of Innovation in Economic Growth
According to the Academy, Joel Mokyr, aged 79, received one-half of the Nobel Prize “for identifying the prerequisites for sustained economic growth through technological progress.” Meanwhile, Aghion, 69, and Howitt, 79, shared the other half “for developing the theory of sustained growth through creative destruction.”
Their combined research, the Academy noted, has significantly advanced the world’s understanding of how innovation fuels long-term development and how societies can maintain continuous growth in the face of technological disruption.
John Hassler, chair of the Nobel Prize committee, explained during the announcement that the trio’s contributions answered a fundamental question: How can technological progress be both the engine and the sustainer of economic growth?
“For most of human history,” Hassler said, “living standards barely changed from one generation to the next. Economic growth was effectively zero, and stagnation was the norm. But over the past two centuries, everything has changed dramatically.”
The Concept of Creative Destruction
Committee member Kerstin Enflo emphasized the historical importance of this transformation. “During the last 200 years, the world has seen more economic growth than ever before,” she said. However, she warned that this period remains short compared to millennia of economic stagnation.
“The laureates’ work reminds us that progress is not automatic,” Enflo added. “Sustained growth depends on maintaining the conditions that allow innovation to thrive.”
Aghion and Howitt’s research on creative destruction — a term originally coined by economist Joseph Schumpeter — explains how innovation disrupts existing markets. In their mathematical model, when new technologies or better products emerge, older ones become obsolete, forcing industries to adapt or vanish. This cycle, though painful for some sectors, is essential for continuous progress.
Their theory provides a framework for understanding modern phenomena such as digital transformation, automation, and artificial intelligence — areas where innovation both creates opportunities and displaces existing systems.
Mokyr’s Historical Perspective on Progress
While Aghion and Howitt focused on economic models, Joel Mokyr, a distinguished professor at Northwestern University in the United States, offered a historical perspective. Drawing from centuries of economic history, Mokyr examined how societies transitioned from stagnation to sustained growth. His research explored the cultural, institutional, and technological conditions that enabled the Industrial Revolution and subsequent periods of innovation.
According to the Academy’s statement, Mokyr’s work “used historical sources to uncover the causes of sustained growth becoming the new normal.” By studying the relationship between scientific discovery and industrial application, he demonstrated how the flow of ideas — not just resources — drives long-term prosperity.
Aghion’s Call for Openness and Global Collaboration
Reacting to the news of his win, Philippe Aghion expressed shock and gratitude during a live phone call with the prize committee.
“I’m still speechless,” he said. “It came as a complete surprise. I can’t find the words to express how I feel.”
In his remarks, Aghion also offered insights into modern economic challenges. He warned that rising trade barriers and protectionist policies could stifle innovation and slow global growth.
“Openness is a key driver of growth,” he said. “Anything that restricts openness — such as steep tariffs or economic isolation — poses a serious threat to progress.”
He further urged European nations to take greater initiative in technology and innovation. “Europe must not allow the United States and China to dominate the global technological landscape,” Aghion said. “We need policies that support research, creativity, and competition.”
Understanding the Nobel Economics Prize
The Nobel Prize in Economic Sciences, officially known as the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, differs slightly from the original Nobel Prizes established by Alfred Nobel’s will in 1896. It was created in 1968 through a donation by Sweden’s central bank, the Sveriges Riksbank, to honor achievements in the field of economics.
Although some critics label it a “false Nobel” because it was not part of Nobel’s original five prizes, it is administered by the Royal Swedish Academy of Sciences under the same strict selection process as the prizes for physics and chemistry.
Over the decades, it has celebrated economists whose work has shaped global policies — from behavioral economics to climate change models — and now, the mechanisms of technological progress.
Closing the Nobel Season
This year’s Nobel season recognized extraordinary contributions across multiple disciplines. The 2025 prizes honored groundbreaking research in quantum mechanics, advances in molecular architecture, and discoveries in human immunology.
The Nobel Literature Prize went to Hungarian author László Krasznahorkai, whose haunting works explore postmodern dystopia and human melancholy. Meanwhile, Venezuelan opposition leader María Corina Machado received the Nobel Peace Prize for her efforts to promote democratic reform in her country — a move that sparked both praise and controversy after she dedicated the award to former U.S. President Donald Trump, who has previously claimed he deserved the honor.
A Prestigious Honor and Global Recognition
The Nobel economics laureates will receive their awards at a formal ceremony on December 10, held simultaneously in Stockholm and Oslo. The date marks the anniversary of Alfred Nobel’s death in 1896. Each winner will be presented with a gold medal, a diploma, and a cash prize of $1.2 million, shared among them.
As the world celebrates their achievements, the message from this year’s Nobel in economics is clear: technological innovation remains the heartbeat of global progress. The work of Mokyr, Aghion, and Howitt underscores that progress depends not only on invention but also on openness, collaboration, and the ability to adapt to constant change.
Their legacy reminds economists and policymakers alike that sustaining growth in the 21st century requires more than just new ideas — it demands a culture that embraces the creative disruption those ideas bring.