Nobel in economics for innovation growth theory awarded to Joel Mokyr, Philippe Aghion and Peter Howitt

The Royal Swedish Academy of Sciences awarded the 2025 Nobel Memorial Prize in Economic Sciences to Joel Mokyr, Philippe Aghion and Peter Howitt “for having explained innovation-driven economic growth.”

Half of the prize goes to Mokyr “for having identified the prerequisites for sustained growth through technological progress,” and the other half is shared by Aghion and Howitt “for the theory of sustained growth through creative destruction.”

The Royal Swedish Academy of Sciences has awarded the 2025 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel to Joel Mokyr, Philippe Aghion and Peter Howitt “for having explained innovation-driven economic growth”. pic.twitter.com/Q3adzj3UFY

— Olomo TIMES (@Olomotimes) October 13, 2025

How prize is divided and rationale

The total prize amount is 11 million Swedish kronor, with ½ awarded to Mokyr and ½ divided between Aghion and Howitt.

In the official citation, Mokyr is recognised for exploring the conditions under which technological innovation can sustain long-term growth.

Aghion and Howitt are recognised for developing the “creative destruction” framework, which models how new products or processes displace older ones — creating both disruption and progress in an economy.

Historical approach vs mathematical model

Joel Mokyr, as an economic historian, draws on historical sources to examine how innovation led to long-term growth. He says that for innovation to sustain itself, it’s not enough for ideas to work — a society also requires explanations and institutions that support building on prior discoveries.

Aghion and Howitt’s joint work from 1992 introduced a formal model in which technological progress involves a cycle of creation and destruction. Their framework shows how new innovations replace older technologies, pushing economies forward.

The laureates’ combined contributions help explain how economies moved beyond historical stagnation to sustained growth through innovation.