The Royal Swedish Academy of Sciences awarded the 2025 Nobel Prize in Economic Sciences to Joel Mokyr (Northwestern University), Philippe Aghion (LSE/INSEAD), and Peter Howitt (Brown University) on October 13, 2025, for 'having explained innovation-driven economic growth.' The 11 million Swedish kronor prize was split — half to Mokyr for identifying prerequisites of sustained technological-progress-led growth, and the other half jointly to Aghion and Howitt for their 'creative destruction' theory of sustained growth. Their 1992 mathematical model demonstrated how continuous innovation generates long-run growth. The work has major implications for India's technology and R&D policy.
Nobel Prize in Economics 2025: Mokyr, Aghion & Howitt Awarded for Innovation-Driven Growth Theory
AQuick answer
The Royal Swedish Academy of Sciences awarded the 2025 Nobel Prize in Economic Sciences to Joel Mokyr (Northwestern University), Philippe Aghion (LSE/INSEAD), and Peter Howitt (Brown University) on October 13, 2025, for 'having explained innovation-driven economic growth.' The 11 million Swedish kronor prize was split — half to Mokyr for identifying prerequisites of sustained technological-progress-led growth, and the other half jointly to Aghion and Howitt for their 'creative destruction' theory of sustained growth. Their 1992 mathematical model demonstrated how continuous innovation generates long-run growth. The work has major implications for India's technology and R&D policy.
Key facts
- Nobel Prize in Economics 2025 was awarded to Mokyr, Aghion, and Howitt on October 13.
- The 11 million kronor prize was for explaining innovation-driven economic growth.
- Aghion and Howitt's 1992 mathematical model demonstrated how innovation generates long-run growth.
- 'Creative destruction' theory shows old industries must be displaced by innovation-led ones.
- Mokyr identified prerequisites for sustained technological-progress-led economic growth.
- The work has major implications for India's technology and R&D policy formulation.
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Whose 1992 mathematical model is cited in the 2025 Nobel Economics Prize announcement as formalising 'creative destruction' to explain sustained growth?
Explanation · Correct answer A
Philippe Aghion (LSE/INSEAD) and Peter Howitt (Brown University) shared the other half of the 2025 Nobel for the theory of sustained growth through creative destruction. Their 1992 mathematical model demonstrated how continuous innovation generates long-run growth, building on Joseph Schumpeter's concept.
Source: NobelPrize.org / NBER / CNN Business
Frequently asked questions
Who won the Nobel Prize in Economics 2025 and what was it awarded for?
The 2025 Nobel Prize in Economic Sciences was awarded to Joel Mokyr (Northwestern University), Philippe Aghion (LSE/INSEAD), and Peter Howitt (Brown University) on October 13, 2025. They were recognised for 'having explained innovation-driven economic growth.'
How was the 11 million Swedish kronor Nobel Prize split among the three laureates?
The 11 million Swedish kronor prize was divided equally: half was awarded to Joel Mokyr for his work identifying the prerequisites of sustained technological-progress-led growth, while the other half was shared jointly by Philippe Aghion and Peter Howitt for their 'creative destruction' mathematical model of growth.
What is the 'creative destruction' theory and who developed its 1992 mathematical model?
The 'creative destruction' theory, originally attributed to economist Joseph Schumpeter, argues that innovation-driven growth requires old industries and technologies to be displaced by new ones. Philippe Aghion and Peter Howitt formalised this idea in their landmark 1992 mathematical model, demonstrating how sustained innovation generates long-run economic growth.
What was Joel Mokyr's specific contribution that was recognised by the Nobel Committee?
Joel Mokyr was recognised for identifying the historical and institutional prerequisites for sustained technological-progress-led economic growth. His research examined why certain societies in certain periods — notably Western Europe during the Industrial Revolution — achieved persistent innovation and growth, while others did not.
What are the implications of the 2025 Nobel Economics work for India's policy-making?
The work of Mokyr, Aghion, and Howitt has significant implications for India's technology and R&D policy. It suggests that sustained economic growth requires robust investment in R&D, strong intellectual property protection, and institutions that encourage knowledge creation and the adoption of new technologies — all areas relevant to India's goal of becoming a developed economy by 2047.
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