A trio of scientists Joel Mokyr, Peter Howitt, and Philippe Aghion has been awarded with the 2025 Nobel economics prize for their groundbreaking work on “creative destruction” theory.
The prestigious accolade is formally known as the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel. This is the year’s final prize and worth 11 million Swedish crowns.
The basis of the award is the economists’ efforts on explaining innovation-driven economic growth.
The creative destruction theory sheds light on how technology paves the way for new products by replacing the old one, thereby leading to a better standard of living, quality of life, and health across the globe.
“The laureates have taught us that sustained growth cannot be taken for granted. Economic stagnation, not growth, has been the norm for most of human history. Their work shows that we must be aware of, and counteract, threats to continued growth,” the Nobel Committee said in a statement.
Joel Mokyr’s contributions involve historical observations to identify the factors necessary for sustained economic growth based on technological innovations.
On the other hand, Philippe Aghion and Peter Howitt developed a model of creative destruction, an incessant process in which new products replace the old ones.
