This year’s Nobel Prize in Economic Sciences is a testament to the power of innovation in driving economic growth, with accolades going to Joel Mokyr, Philippe Aghion, and Peter Howitt. Mokyr receives recognition for his research that outlines the necessary conditions for sustained economic progress driven by technological advancements. Aghion and Howitt are jointly awarded for their foundational theory explaining how “creative destruction” propels long-term economic growth.
The Nobel committee highlighted Mokyr’s findings, stating that for a self-perpetuating cycle of innovation, a scientific comprehension of ‘why’ things work is paramount, not just the knowledge of ‘how.’ Mokyr is a distinguished professor at Northwestern University. Aghion, with affiliations at the College de France and the London School of Economics, and Howitt from Brown University, co-authored a landmark 1992 study that introduced a mathematical framework for creative destruction. This concept describes the dynamic where novel products and services disrupt established markets, leading to an evolutionary process.
The committee chair stressed that the laureates’ work serves as a crucial reminder that economic growth is not inevitable and relies on mechanisms like creative destruction to prevent stagnation. Last year’s Nobel laureates examined the drivers of wealth and poverty across nations, linking prosperity to open and free societies.