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Philippe Aghion Discussed Creative Destruction and the Future of Capitalism at CERGE-EI

28 May, 2026

CERGE-EI welcomed Nobel laureate Philippe Aghion as part of its Distinguished Speakers Series and on the occasion of the institution’s 35th anniversary. His public lecture, titled The Power of Creative Destruction: Rethinking Capitalism, took place on Thursday, 28 May 2026, in Room 7 at CERGE-EI.

Professor Aghion, affiliated with the Collège de France, INSEAD, and the London School of Economics and Political Science, is one of the leading scholars of economic growth, innovation, and the role of institutions in long-term development. He is also a member of the CERGE-EI Executive and Supervisory Committee.

In his lecture, Professor Aghion revisited Joseph Schumpeter’s concept of creative destruction, emphasizing the role of innovation in driving long-term economic growth. The concept describes the process through which new technologies, firms, and business models replace older ones, generating prosperity while also reshaping industries, labor markets, and social structures.

Drawing on the Schumpeterian growth paradigm, Professor Aghion discussed how innovation can support productivity growth, but also how it may create tensions linked to inequality, market concentration, and the ability of incumbent firms to block future competitors. These themes are central to his work on growth policy and the role of the state in shaping incentives for innovation.

The lecture also addressed the implications of artificial intelligence and structural change for European economies. Professor Aghion connected the promises and risks of AI to broader questions about competition, education, labor markets, and social protection. In line with his recent public lectures, he highlighted that innovation can bring broad social benefits only when supported by strong institutions and effective public policies.

Professor Aghion emphasized that artificial intelligence has enormous growth potential, but that realizing this potential depends on competition, education, and public policies, such as Denmark’s flexicurity model, that help societies adapt. He identified the lack of competition as one of the greatest risks associated with AI.

As one way to support innovation in Europe, which is falling behind the United States in this area, he underlined the need for long-term financial support for basic research.

The event formed part of CERGE-EI’s 35th anniversary program and reflected the institution’s long-standing commitment to bringing leading international economists into conversation with the academic community, policymakers, students, alumni, and the wider public.

Watch the public lecture here.

Explore the photo gallery here.