Nobel Prize In Economics 2025 : Economics Nobel To Be Shared By Three For Research On Innovation-Driven Economic Growth

13th October 2025 at 5:15 PM

1 minute read

Nobel Memorial Prize in Economic Sciences for 2025 has been awarded to Joel Mokyr, Philippe Aghion, and Peter Howitt for their groundbreaking work on innovation and economic growth.

Stockholm : The Nobel Memorial Prize in Economic Sciences for 2025 has been awarded to Joel Mokyr, Philippe Aghion, and Peter Howitt for their groundbreaking work on innovation and economic growth. The Royal Swedish Academy of Sciences announced the award on October 13, marking the final prize of this year’s Nobel season.

According to the Nobel committee, the three economists were recognised for having explained innovation-driven economic growth. One half of the prize was awarded to Joel Mokyr for having identified the prerequisites for sustained growth through technological progress,” while the other half was shared by Philippe Aghion and Peter Howitt “for the theory of sustained growth through creative destruction.

His research showed that technological progress becomes continuous only when innovations are supported by a culture that values knowledge, experimentation, and openness to change. Mokyr’s studies linked the industrial revolution to a period when Europe became more curious and tolerant of new ideas. He argued that innovation could only thrive when people not only knew how to make things work but also understood why they worked.

This scientific understanding, according to him, was what allowed societies to build on past discoveries and maintain progress over generations. Philippe Aghion of the Collge de France and Peter Howitt of Brown University were honoured for developing the influential theory of “creative destruction.” Their 1992 paper presented a model showing how economic growth occurs through a cycle in which new innovations replace old technologies and products.

Their work explained how progress involves both creation and loss—new companies and technologies emerge, while outdated ones disappear. This process, though sometimes disruptive, drives long-term growth by encouraging continual innovation and competition. The Nobel committee said the trio’s research has helped economists and policymakers better understand the roots of economic progress.

The prize, officially called The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, was established in 1968 by Sweden’s central bank to honour the founder of the Nobel prizes, Alfred Nobel. While it is not one of the original Nobel prizes, it is awarded alongside them each year and presented on December 10, the anniversary of Nobel’s death.