Published: 12 October 2025NobelPrize.orgEconomy
Nobel Prize in Economics 2025 Awarded to Mokyr, Aghion and Howitt for Explaining Innovation-Driven Growth
The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2025 was awarded to Joel Mokyr, Philippe Aghion and Peter Howitt 'for having explained innovation-driven economic growth.' The announcement was made on October 13, 2025 by the Royal Swedish Academy of Sciences.
Joel Mokyr (Northwestern University and Tel Aviv University) received one half of the prize 'for having identified the prerequisites for sustained growth through technological progress.' He showed that sustained economic growth requires three elements: useful knowledge, mechanical competence, and institutions conducive to technological progress.
Philippe Aghion (Collège de France, INSEAD, and London School of Economics) and Peter Howitt (Brown University) shared the other half 'for the theory of sustained growth through creative destruction.' Building on Joseph Schumpeter's ideas, they developed formal models showing how new innovations constantly replace older technologies, driving sustained economic growth.
The prize amount was 11 million Swedish kronor. This prize addresses one of the most important questions in economics: why some countries grow while others stagnate.
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The Nobel Prize in Economics 2025 was awarded to Mokyr, Aghion and Howitt for explaining which of the following?
Explanation · Correct answer BThe 2025 Nobel Economics Prize was awarded to Joel Mokyr, Philippe Aghion and Peter Howitt 'for having explained innovation-driven economic growth.' Mokyr identified prerequisites for sustained growth; Aghion and Howitt developed the theory of growth through creative destruction.
Frequently asked questions
Nobel Prize Economics 2025 awarded to Mokyr Aghion Howitt for innovation-driven growth
The **Nobel Prize in Economics 2025 was awarded jointly to Joel Mokyr, Philippe Aghion, and Peter Howitt** for their explanations of **innovation-driven economic growth**. Their combined body of work spans **economic history, mathematical modelling of creative destruction, and the role of knowledge in sustaining long-run prosperity**.
What is the full citation for the Nobel Prize in Economics 2025?
The official Nobel citation recognised Joel Mokyr, Philippe Aghion and Peter Howitt 'for having explained innovation-driven economic growth.' The 11 million Swedish kronor prize was split with one half to Mokyr and the other half jointly to Aghion and Howitt.
How does the Nobel Economics 2025 citation on innovation relate to India's growth story?
Analysts note the Nobel Economics 2025 themes are relevant to India's development debate: shifting from technology adoption (adapting global innovations) toward frontier innovation (creating new technologies), which involves **strengthening R&D, universities, and patent and startup ecosystems** — themes central to the 2025 laureates' work.
What previous Nobel Economics work is most related to Aghion Howitt Mokyr 2025 prize?
The 2025 prize builds on **Paul Romer (Nobel 2018) for endogenous technological change** and **Robert Solow (Nobel 1987) for growth accounting**. Aghion-Howitt's Schumpeterian model extends Romer's framework by adding **creative destruction dynamics**, while Mokyr's historical work provides the **empirical foundations** linking knowledge systems to industrial takeoff.
What are the most famous books by Joel Mokyr related to Nobel Economics 2025?
Joel Mokyr's most influential books include **'The Lever of Riches: Technological Creativity and Economic Progress' (1990)** and **'The Gifts of Athena: Historical Origins of the Knowledge Economy' (2002)**. His landmark work **'A Culture of Growth: The Origins of the Modern Economy' (2016)** directly links Enlightenment intellectual culture to the Industrial Revolution and innovation-led growth.
