Published: 12 October 2025Nobel PrizeInternational
Nobel Prize in Economics 2025: Mokyr, Aghion, Howitt for Innovation-Driven Growth
The 2025 Sveriges Riksbank Prize in Economic Sciences was awarded to Joel Mokyr (Northwestern University, 79), Philippe Aghion (College de France/LSE, 69), and Peter Howitt (Brown University, 79) 'for having explained innovation-driven economic growth'. The announcement was made on October 13, 2025.
Mokyr received half the prize for identifying prerequisites for sustained growth through technological progress, while Aghion and Howitt shared the other half for the theory of sustained growth through creative destruction. The prize of 11 million Swedish kronor highlights the role of innovation, entrepreneurship, and competition in driving long-term economic growth — directly relevant to India's 'Innovation Mission' and startup ecosystem.
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Q: Discuss the contribution of the 2025 Nobel Economics laureates to innovation-driven growth theory and its relevance for India's development strategy. Answer (50 words): The 2025 Sveriges Riksbank Prize honoured Joel Mokyr, Philippe Aghion and Peter Howitt for explaining innovation-driven economic growth. Mokyr identified prerequisites for sustained technological progress; Aghion and Howitt formalised creative destruction theory. Worth 11 million Swedish kronor, their work reinforces the case for India's innovation mission and startup ecosystem.
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The concept of 'Creative Destruction', which formed the theoretical basis for the 2025 Nobel Prize in Economics, was originally proposed by:
Explanation · Correct answer CThe concept of 'creative destruction' was originally proposed by Joseph Schumpeter. Aghion and Howitt mathematically formalised Schumpeter's concept in their 1992 'Schumpeterian growth model', for which they shared the 2025 Nobel Prize in Economics.
