Nobel Economics Prize Honors Innovation, ‘Creative Destruction’/ Newslooks/ WASHNMGTON/ J. Mansour/ Morning Edition/ Joel Mokyr, Philippe Aghion, and Peter Howitt won the Nobel economics prize for their work on innovation-driven economic growth. Their research focuses on creative destruction — how new technologies replace old ones. The committee praised their impact on understanding long-term prosperity.
Nobel Prize in Economics Recognizes Innovation Experts Quick Looks
- Joel Mokyr, Philippe Aghion, and Peter Howitt awarded 2025 Nobel economics prize.
- Recognized for research on innovation-driven growth and creative destruction.
- Mokyr is an economic historian; Aghion and Howitt use mathematical models.
- Creative destruction refers to new technologies replacing outdated ones.
- The winners helped explain mechanisms behind long-term economic growth.
- Committee said their work shows growth isn’t automatic, but policy-driven.
- Mokyr called the win a “complete surprise,” joked he had better odds of becoming Pope.
- Aghion criticized protectionism, warning it threatens global innovation.
- Aghion advised French President Macron and led France’s AI strategy group.
- The trio shares nearly $1.2 million and will be honored December 10.
Nobel Economics Prize Honors Innovation, ‘Creative Destruction’
Deep Look
STOCKHOLM (AP) — The 2025 Nobel Memorial Prize in Economic Sciences was awarded Monday to Joel Mokyr, Philippe Aghion, and Peter Howitt for their groundbreaking work explaining how innovation drives long-term economic growth through a process known as creative destruction.
The three economists, whose research spans both historical analysis and advanced mathematical modeling, were recognized for helping the world better understand how technological advancements replace outdated systems, fueling economic progress — and sometimes upheaval.
Understanding Creative Destruction
The concept of creative destruction, first popularized by economist Joseph Schumpeter in 1942, explains how new innovations replace older technologies, often displacing industries but ultimately driving economic development.
The Nobel committee praised the trio for quantifying and deepening the understanding of this process.
- Mokyr, a Dutch-born professor at Northwestern University, examined long-term innovation patterns using historical sources.
- Aghion, a professor at Collège de France and the London School of Economics, and Howitt, a Canadian economist from Brown University, used mathematical models to study the mechanisms behind sustained innovation.
Their combined work offers a comprehensive view of how economies evolve through cycles of invention, adaptation, and renewal.
Winners React With Surprise and Humor
Reached by phone early Monday, the 79-year-old Mokyr said he was still processing the news.
“People always say this, but I am being truthful — I had no clue this was going to happen,” he told the AP. “I told my students I had a better chance of being elected Pope — and I’m Jewish, by the way.”
Mokyr, who turns 80 next summer, added that he has no plans to retire. “This is the job I dreamed of my whole life.”
Aghion, 69, also expressed shock during a phone call to the Nobel press conference. “I can’t find the words to express what I feel,” he said, adding that he plans to reinvest his prize money into his research lab.
Aghion also addressed current geopolitical concerns, criticizing U.S. protectionism. “That is not good for world growth and innovation,” he warned.
A Legacy of Influence
The committee highlighted several key contributions:
- Mokyr’s historical research demonstrated the importance of scientific reasoning behind innovation, arguing that economic transformation requires more than just successful invention — it also demands a broader cultural and intellectual ecosystem that supports progress.
- In a seminal 1992 paper, Aghion and Howitt presented a mathematical model of creative destruction, showing how ongoing innovation is essential for sustained economic growth.
Their theories also have real-world applications: Aghion played a pivotal role in crafting French President Emmanuel Macron’s economic policies during the 2017 campaign. In 2024, he co-led the French Artificial Intelligence Commission, proposing strategies to make France a global leader in AI innovation.
According to John Hassler, chair of the Nobel economics committee, “Their 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.”
Prize Details and Historical Context
The laureates will share the 11 million Swedish kronor prize (approximately $1.2 million USD), with Mokyr receiving half, and Aghion and Howitt splitting the other half. They will also receive the traditional 18-carat gold medal and diploma during a ceremony on December 10, the anniversary of Alfred Nobel’s death.
Though widely referred to as the Nobel Prize in Economics, the award is officially named the Bank of Sweden Prize in Economic Sciences in Memory of Alfred Nobel, established in 1968.
Since then, it has been awarded 57 times to 99 individuals — only three of whom have been women, highlighting a long-standing gender imbalance in the field.
This year’s economics award follows last week’s announcements in medicine, physics, chemistry, literature, and peace, which together make up the original Nobel honors envisioned by Alfred Nobel, the 19th-century Swedish inventor and philanthropist.
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