Overview

• The Royal Swedish Academy of Sciences awarded the 11 million SEK prize, with half to Joel Mokyr and the other half shared by Philippe Aghion and Peter Howitt.
• Mokyr was cited for historical analysis showing that sustained progress requires scientific explanations for why innovations work and a society open to new ideas.
• Aghion and Howitt were honored for a 1992 model of creative destruction that explains how new products and methods replace old ones and propel long-term growth.
• The committee warned that growth is not guaranteed and said policy must uphold innovation mechanisms against obstacles such as monopolies, limits on academic freedom and vested interests.
• Speaking at the announcement, Aghion urged Europe to learn from the United States and China on reconciling competition policy with targeted industrial policy.