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2025 Nobel Prize in Economics: Joel Mokyr, Philippe Aghion and Peter Howitt - Award for theory of growth through innovation and creative destruction

13 October, 2025

The 2025 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel has been awarded to Joel Mokyr, Philippe Aghion and Peter Howitt “for having explained innovation-driven economic growth”.

One half goes to Joel Mokyr “for having identified the prerequisites for sustained growth through technological progress” and the other half jointly to Philippe Aghion and Peter Howitt “for the theory of sustained growth through creative destruction.”

Economist Philippe Aghion is a member of the Executive and Supervisory Board at CERGE-EI. Director Marek Kapička expressed his delighment: “It is my immense pleasure to congratulate Philippe Aghion on todays' Nobel Prize. CERGE-EI is proud and thankful to have him as a member of its Executive and Supervisory Committee for many years.”

Professor Michal Kejak of CERGE-EI points out that economists Aghion and Howitt continued the tradition of Joseph Schumpeter, an Austrian economist and sociologist born in Třešť: “Schumpeter’ idea of creative destruction explains how innovation constantly replaces old technologies and structures, thereby creating space for new growth. The endogenous growth model of Aghion and Howitt formalized this mechanism and showed how innovation ensures long-term prosperity.”

Philippe Aghion himself pointed to Europe's lag in innovation. According to him, European countries must realize that they cannot afford to cede their leading position in technological development to the United States and China. At the same time, he expressed his disagreement with protectionist tendencies in the US, which he believes are not good for global economic growth or innovation.

The other half of the prize was awarded to economic historian Joel Mokyr. “He added a broader perspective: he explained how cultural, institutional, and social conditions throughout history determined whether Schumpeter's mechanism of innovation could fully develop and support sustainable economic growth,” explains Michal Kejak.

The Nobel Prize in Economics is not one of the original prizes established by dynamite inventor Alfred Nobel in his will in 1895. It has been awarded since 1968, and has been awarded 57 times to 99 laureates between 1969 and 2025. Find out more.