The Royal Swedish Academy of Sciences announced the 2025 Nobel Prize in Economic Sciences on October 13 to Joel Mokyr (Northwestern University), Philippe Aghion (Collège de France / INSEAD / LSE), and Peter Howitt (Brown University) 'for having explained innovation-driven economic growth'. The prize of 11 million Swedish kronor was split — half to Mokyr for identifying prerequisites of sustained technological growth, and half jointly to Aghion and Howitt for their 'creative destruction' model (rooted in their landmark 1992 article). Their work builds on Schumpeter's idea that old industries must be displaced by new, innovation-led ones. The research has profound implications for India, which still lags in transitioning from capital-accumulation to innovation-driven growth. Only 51.6% of Indians (age 25+) have completed secondary education vs. 78.6% in China.
2025 Nobel Prize in Economics Awarded to Mokyr, Aghion & Howitt for Innovation-Driven Growth
The Royal Swedish Academy of Sciences announced the 2025 Nobel Prize in Economic Sciences on October 13 to Joel Mokyr (Northwestern University), Philippe Aghion (Collège de France / INSEAD / LSE), and Peter Howitt (Brown University) 'for having explained innovation-driven economic growth'. The prize of 11 million Swedish kronor was split — half to Mokyr for identifying prerequisites of sustained technological growth, and half jointly to Aghion and Howitt for their 'creative destruction' model (rooted in their landmark 1992 article). Their work builds on Schumpeter's idea that old industries must be displaced by new, innovation-led ones. The research has profound implications for India, which still lags in transitioning from capital-accumulation to innovation-driven growth. Only 51.6% of Indians (age 25+) have completed secondary education vs. 78.6% in China.
Key facts
- Nobel Prize in Economics 2025 was awarded on October 13 to Mokyr, Aghion, and Howitt.
- The prize recognises their work explaining innovation-driven economic growth.
- Mokyr identified prerequisites of sustained technological-progress-led growth.
- Aghion and Howitt's 1992 'creative destruction' model builds on Schumpeter's theory.
- The prize was split: half to Mokyr, half jointly to Aghion and Howitt.
- Their research has implications for India's transition from capital-accumulation to innovation-driven growth.
6-axis classification
Appears in these topics
Practice MCQ from this story
SolveTap an option below. Correct or incorrect feedback appears instantly.
What was the total prize money awarded by the Royal Swedish Academy of Sciences for the 2025 Nobel Prize in Economics?
The 2025 Nobel Economics Prize of 11 million Swedish kronor was split — half to Mokyr for identifying prerequisites of sustained technological growth, and half jointly to Aghion and Howitt for the creative destruction model.
Source: NobelPrize.org / CNBC / NBER
Frequently asked questions
Who were awarded the 2025 Nobel Prize in Economic Sciences and for what contribution?
Joel Mokyr, Philippe Aghion, and Peter Howitt were awarded the 2025 Nobel Prize in Economic Sciences for explaining innovation-driven economic growth. Mokyr received half the prize for identifying prerequisites of sustained technological growth, while Aghion and Howitt shared the other half for their 'creative destruction' model.
What is the 'creative destruction' model associated with the 2025 Nobel Economics laureates?
The 'creative destruction' model, developed by Aghion and Howitt in 1992, builds on Schumpeter's theory and explains how innovation displaces existing technologies and firms, driving long-term economic growth through a continuous cycle of creation and destruction.
How was the 2025 Nobel Prize in Economics distributed among the three laureates?
The prize of 11 million Swedish kronor was split with half awarded to Joel Mokyr and the remaining half awarded jointly to Philippe Aghion and Peter Howitt.
Which institutions are the 2025 Nobel Economics laureates affiliated with?
Joel Mokyr is affiliated with Northwestern University, Philippe Aghion with Collège de France, INSEAD, and LSE, and Peter Howitt with Brown University.
Was this useful?
Share corrections or missing exam angles with the editorial team.
Send feedback