Nobel Prize in Economics Honors Research on Innovation and Economic โGrowth
Stockholm, Sweden – The Nobel Prize in Economic Sciences has been awarded to Joel Mokyr, Philippe Aghion, and Peter Howittโ for their โgroundbreaking research explainingโ how innovation fuels โlong-term โeconomicโ growth, a process known as “creative destruction.” โขThe Royal Swedish Academy of Sciences announced the winners Monday, recognizing their contributions toโ understanding the forces behind sustained prosperity.
The laureates’ work illuminates the mechanisms driving innovation โ- the constant replacement of old technologies and businesses with new,more efficient onesโข -โ and why fostering this process isโ crucial to avoiding economic stagnation. The concept of “creative destruction” was popularized byโค economist Joseph Schumpeter in his 1942 book, “Capitalism, Socialism and Democracy,” but this year’s winners have provided deeper insights into how it โคhappensโ and why โ it โmatters.
Mokyr was recognized โขfor demonstrating that scientific explanations – understanding why an innovation โworks – are as vital as simply knowing โข that it โworks for driving a self-sustaining processโข of โขinnovation. Aghion and Howitt, meanwhile, developedโฃ a mathematical model in a 1992 paper that outlines the mechanisms behind sustained economic growth throughโ creative destruction.
Aghion’s workโข extends beyondโข academia; he contributed to the economicโ program โคof French President โฃEmmanuel Macron during hisโ 2017 election campaign andโ recently co-chaired the Artificial Intelligence Commission, presentingโ Macron withโค a report โคcontaining 25 recommendations to establish France as a โขleader in AI in 2024.
“Theโค work of the laureates demonstrates that economic growth cannotโ be takenโ for granted. We โmust defendโ the mechanisms underlying creative destruction to avoid stagnation,”โ stated John โฃHassler, โขchair โคof the economic sciences prize committee.
Theโ prize, worth 11โข million Swedish crowns, โคwill be split, with half awardedโ to Mokyr and the remaining half shared between Aghion and howitt. Along with theโฃ monetary award, the winners will receive an 18-karat gold medal and a diploma.