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Mokyr, Aghion and Howitt Win 2025 Economics Nobel for Explaining Innovation‑Driven Growth

The committee warned that monopolies, protectionism, barriers to open research, weak competition could stall future prosperity.

Overview

  • The Royal Swedish Academy of Sciences awarded the prize for work showing how continuous technological innovation drives long‑term growth through creative destruction.
  • Joel Mokyr receives half the 11 million SEK award for identifying historical and cultural conditions that enable sustained technological progress.
  • Philippe Aghion and Peter Howitt share the other half for a 1992 model formalizing how new products displace old ones, creating growth and distributional conflicts.
  • Committee chair John Hassler said growth cannot be taken for granted and stressed preserving openness and competition to prevent a return to stagnation.
  • Aghion urged Europe to reconcile competition policy with targeted industrial policy, cautioned against protectionism, and called for strong antitrust in fast‑growing tech sectors.