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2025 Nobel Prize in Economics Honors Mokyr, Aghion and Howitt for Explaining Innovation-Driven Growth

The academy split the award between Joel Mokyr and the Aghion–Howitt duo to underline policy lessons on sustaining creative destruction.

Overview

  • The Royal Swedish Academy of Sciences announced the award on October 13, citing the trio for showing how technological change fuels long‑run economic growth.
  • Mokyr receives one half of the prize, reported at about 5.5 million SEK, for demonstrating how the accumulation of useful knowledge and open institutions enabled sustained growth.
  • Aghion and Howitt share the other half for a formal model of creative destruction in which new technologies displace old ones, driving growth but provoking conflicts with incumbents.
  • Committee chair John Hassler said growth is not guaranteed and stressed the need to preserve mechanisms that allow beneficial creative destruction or risk economic stagnation.
  • Contextual reporting notes that from 1969 to 2025 the economics prize went to 99 laureates, roughly 73 of them Americans, underscoring U.S. dominance in the field.