Nobel Prize in Economics awarded to Mokyr, Aghion, and Howitt for innovation and growth

Stockholm: Joel Mokyr, Philippe Aghion, and Peter Howitt have won the 2025 Nobel Memorial Prize in Economics for their work on how innovation drives economic growth.

Nobel Prize committee, in a post on X, announced, “The Royal Swedish Academy of Sciences has decided to award the 2025 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel to Joel Mokyr, Philippe Aghion and Peter Howitt ‘for having explained innovation-driven economic growth’ with one half to Mokyr ‘for having identified the prerequisites for sustained growth through technological progress’ and the other half jointly to Aghion and Howitt ‘for the theory of sustained growth through creative destruction."

Aghion and Howitt also studied the mechanisms behind sustained growth, including in a 1992 article in which they constructed a mathematical model for what is called creative destruction: When a new and better product enters the market, the companies selling the older products lose out.

“The laureates' work shows that economic growth cannot be taken for granted. We must uphold the mechanisms that underlie creative destruction, so that we do not fall back into stagnation,” said Hassler, Chair of the Committee for the prize in economic sciences.

Last year's award went to three economists, Daron Acemoglu, Simon Johnson and James A. Robinson, who studied why some countries are rich and others poor and have documented that freer, open societies are more likely to prosper.

The economics prize is formally known as the Bank of Sweden Prize in Economic Sciences in Memory of Alfred Nobel. The central bank established it in 1968 as a memorial to Nobel, the 19th-century Swedish businessman and chemist who invented dynamite and established the five Nobel Prizes.

Since then, it has been awarded 56 times to a total of 96 laureates. Only three of the winners have been women.

Nobel purists stress that the economics prize is technically not a Nobel Prize, but it is always presented together with the others on Dec. 10, the anniversary of Nobel's death in 1896.

Nobel honours were announced last week in medicine, physics, chemistry, literature and peace.

Mokyr is affiliated with Northwestern University, Aghion with Collège de France and the London School of Economics, and Howitt with Brown University.