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Khabor Wala Desk
Published: 13th October 2025, 12:09 PM
Three eminent economists — Joel Mokyr, Philippe Aghion, and Peter Howitt — have been awarded the 2025 Nobel Prize in Economic Sciences for their pioneering contributions to the theory of innovation-driven economic growth.
On Monday, 13 October, the Royal Swedish Academy of Sciences officially announced the laureates, recognising their groundbreaking research on how technological innovation shapes long-term economic development.
According to the Nobel Committee, the official name of the prize is “The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel”.
This year’s award marks the final Nobel Prize announcement of 2025, carrying a monetary value of 11 million Swedish kronor (approximately USD 1.2 million).
| Prize Details | Information |
| Official Title | The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel |
| Total Prize Amount | 11 million Swedish kronor (~USD 1.2 million) |
| Year | 2025 |
| Awarding Body | Royal Swedish Academy of Sciences |
| Date of Announcement | 13 October 2025 |
The Nobel Committee stated: “These three economists have taught us that sustained economic growth is not a natural state. For much of human history, economic stagnation was the norm. Their work demonstrates that innovation must be both protected and encouraged to achieve lasting prosperity.”
The Laureates and Their Contributions
| Laureate | Institution | Contribution | Prize Share |
| Joel Mokyr | Northwestern University, USA | Identified historical elements of sustainable growth through technological innovation. | ½ |
| Philippe Aghion | Collège de France (Paris), INSEAD, and London School of Economics, UK | Co-developed the “Creative Destruction” model, explaining how new innovations replace outdated ones. | ¼ |
| Peter Howitt | Brown University, USA | Co-developed the “Creative Destruction” model with Aghion. | ¼ |
Joel Mokyr, Professor at Northwestern University, receives half of the total award for his historical analysis linking technological change to long-term economic development.
The remaining half is shared between Philippe Aghion and Peter Howitt, recognised for their development of the mathematical model of “Creative Destruction” — a concept describing the continuous process by which new and improved products replace outdated ones, driving economic renewal.
Nobel Committee member John Hassler praised the trio’s collective contribution, saying: “Joel Mokyr, through historical analysis, has identified the elements that make sustainable growth dependent on technological innovation.”
He further added: “Philippe Aghion and Peter Howitt developed a mathematical model of creative destruction — an endless process where innovation continuously transforms the economic landscape.”
Their combined work bridges economic theory, history, and innovation policy, providing a deeper understanding of how societies escape stagnation and foster progress. The Nobel Committee highlighted that their research continues to influence modern growth models and innovation-driven policy frameworks worldwide.
Source: Reuters
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