**Trio Wins 2025 Economics Nobel Prize for Explaining Innovation-Driven Economic Growth**
*By Dwaipayan Roy | October 13, 2025, 3:43 PM*
The 2025 Nobel Memorial Prize in Economic Sciences has been awarded to Joel Mokyr, Philippe Aghion, and Peter Howitt for their groundbreaking work on innovation-driven economic growth.
### Prize Details
Joel Mokyr received half of the prize for his research identifying the prerequisites for sustained economic growth through technological progress. The other half was jointly awarded to Philippe Aghion and Peter Howitt for their development of the theory of sustained growth via “creative destruction.”
### Historical Insights by Joel Mokyr
Mokyr’s work delves into the historical factors behind why sustained growth has become a norm in modern economies. Utilizing extensive historical sources, he argued that scientific explanations are crucial for innovations to succeed one after another in a self-generating cycle. Before the Industrial Revolution, such scientific understanding was often absent, which hindered the cumulative progress of discoveries and inventions.
Furthermore, Mokyr emphasized the importance of a society being open to new ideas and change as a key element in fostering continuous innovation and growth.
### The Economic Model of Creative Destruction by Aghion and Howitt
In a seminal 1992 paper, Aghion and Howitt introduced a mathematical model explaining how new and improved products replace older ones in the market. This dynamic process, termed “creative destruction,” captures the dual nature of innovation—bringing about creative advancements while simultaneously rendering existing products obsolete.
Their work has become fundamental in understanding how innovation drives long-term economic growth by continuously reshaping industries and markets.
### About the Nobel Memorial Prize in Economic Sciences
Established in 1968 by Sweden’s central bank, the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel honors the legacy of Alfred Nobel, the Swedish inventor and businessman best known for founding the five original Nobel Prizes.
The Economics Prize is awarded annually on December 10, the anniversary of Alfred Nobel’s death. Since its inception, it has been awarded 56 times to 96 individuals.
### Other 2025 Nobel Prize Winners
– **Physics:** John Clarke, Michel H. Devoret, and John M. Martinis
– **Chemistry:** Susumu Kitagawa, Richard Robson, and Omar M. Yaghi
– **Medicine:** Mary E. Brunkow, Fred Ramsdell, and Shimon Sakaguchi
– **Literature:** Hungarian author László Krasznahorkai
– **Peace:** Venezuelan politician Maria Corina Machado
The 2025 Nobel laureates represent outstanding achievements across a diverse range of fields, highlighting remarkable contributions to science, literature, and peace.
https://www.newsbytesapp.com/news/world/these-are-the-winners-of-2025-nobel-prize-in-economics/story
