2025 Nobel Prize in Economics Awarded to Joel Mokyr, Philippe Aghion, and Peter Howitt for Innovation-Driven Growth Theory

Stockholm, October 13, 2025 — The 2025 Nobel Prize in Economic Sciences has been awarded to Joel Mokyr, Philippe Aghion, and Peter Howitt for their groundbreaking contributions to understanding innovation-driven economic growth. The Royal Swedish Academy of Sciences announced the decision, highlighting the trio’s influential research on how technological progress and creative destruction fuel long-term prosperity.

Joel Mokyr, a professor at Northwestern University, was recognized for his historical analysis of how scientific thinking and cultural openness enable societies to sustain innovation. His work explains why economic progress accelerated during the Industrial Revolution and how knowledge-based institutions promote continuous technological change.

Philippe Aghion of the College de France and Peter Howitt of Brown University were jointly honored for developing the theory of “creative destruction.” Their model formalized the idea that innovation, while often disruptive, is essential for sustained growth. It explains how new technologies replace old ones, driving productivity and living standards upward even as older industries fade.

According to the Nobel Committee, their combined research provides a unified framework for understanding why certain economies innovate faster and grow more sustainably than others. It also offers insights for policymakers aiming to balance technological progress with social stability and equitable growth.

The laureates will share the prize of 11 million Swedish kronor. Half of the award will go to Mokyr, while Aghion and Howitt will share the remaining half. The Nobel Committee described their work as a “cornerstone for modern growth theory,” noting its relevance in an era of rapid technological disruption and global competition.

Global leaders and economists have praised the selection, emphasizing how their findings continue to shape debates on industrial policy, innovation funding, and economic inequality. The award underscores the vital role of ideas, research, and entrepreneurship in advancing human welfare.