Joel Mokyr, Philippe Aghion, and Peter Howitt Win the 2025 Nobel Prize in Economics

The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2025 has been awarded to Joel Mokyr, Philippe Aghion, and Peter Howitt for their groundbreaking contributions to understanding innovation-driven economic growth. Their work explains how technological progress and creative destruction have transformed economies from stagnation to sustained prosperity over the past two centuries.

Nobel Prize In Economics 2025 Winners

Joel Mokyr’s Insights On Historical Growth

• Mokyr used historical evidence to explain why innovation became self-sustaining after the Industrial Revolution.
• He emphasized the need for scientific understanding, cultural openness to new ideas, and societal acceptance of change as foundations for continual progress.
• His research highlighted that before the modern era, stagnation was the norm, as discoveries did not consistently lead to further innovation.

Aghion and Howitt’s Theory of Creative Destruction

• In their landmark 1992 paper, Aghion and Howitt developed a mathematical model of creative destruction, showing how new innovations displace old technologies.
• This process fuels productivity and prosperity but also creates economic conflicts, as older firms and workers face displacement.
• They emphasized that societies must manage these transitions constructively to prevent innovation from being blocked by vested interests.

Broader Impact on Economic Thought

• The laureates’ combined work has redefined how economists understand long-term growth mechanisms.
• Their findings underline the importance of innovation policy, education, and institutional support to maintain economic dynamism.
• Committee Chair John Hassler noted that “economic growth cannot be taken for granted; we must uphold the mechanisms of creative destruction to avoid stagnation.”

Prize Details

• Announced by: The Royal Swedish Academy of Sciences
• Date: October 13, 2025
• Prize Amount: 11 million Swedish kronor
• Distribution: Half to Joel Mokyr; half jointly to Philippe Aghion and Peter Howitt.

About the Laureates

• Joel Mokyr: Born 1946, Leiden, Netherlands; Ph.D., Yale University (1974).
• Philippe Aghion: Born 1956, Paris, France; Ph.D., Harvard University (1987).
• Peter Howitt: Born 1946, Canada; Ph.D., Northwestern University (1973).