American-Israeli Joel Mokyr, French economist Philippe Aghion, and Canadian Peter Howitt win the 2025 economics prize for research explaining how innovation fuels long-term prosperity.
The 2025 Nobel Prize in Economic Sciences has been awarded to Joel Mokyr, Philippe Aghion, and Peter Howitt for their pioneering research on how technological innovation drives sustained economic growth.
The Royal Swedish Academy of Sciences announced the award on Monday, praising the trio “for having explained innovation-driven economic growth.”
Often nicknamed the “false Nobel”, the prize — formally known as the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel — carries a cash award of 11 million Swedish kronor (about $1.2 million), which the three will share.
Explaining the Engines of Growth
The committee said their collective work helps explain why the past two centuries have seen unprecedented economic expansion, lifting billions out of poverty — a stark contrast to the stagnation that characterized much of human history.
Joel Mokyr, a professor at Northwestern University in the United States, receives half of the prize for his historical analysis of the Industrial Revolution.
His research showed that lasting economic progress emerged when societies began understanding how and why technologies work — not merely that they do. This shift, he argued, allowed continuous improvement and accumulation of knowledge, laying the foundations for modern growth.
The other half of the award is shared by Philippe Aghion, of the Collège de France and the London School of Economics, and Peter Howitt, of Brown University in the United States.
Their influential 1992 paper developed the theory of sustained growth through “creative destruction”, expanding on ideas first introduced by Joseph Schumpeter in the early 20th century. The model formalized how innovation — by replacing outdated technologies and business models — fuels productivity and progress over time.
A Broader Nobel Context
This year’s economics award concludes the 2025 Nobel season, which recognized achievements in physics, chemistry, medicine, literature, and peace.
Earlier laureates included discoveries on the human immune system, advancements in quantum mechanics, and breakthroughs in molecular architecture.
The Nobel Peace Prize was awarded to Venezuelan opposition leader María Corina Machado, who surprised many by dedicating her award to US President Donald Trump, noting his public claim that he “deserved it.”
A Controversial Prize with Global Influence
The economics prize is unique among the Nobels — it was not established by Alfred Nobel in his 1896 will but created in 1968 by Sweden’s central bank, the Sveriges Riksbank, to commemorate its 300th anniversary.
Critics often label it a “false Nobel” for that reason, though its laureates are selected and honored alongside the other Nobel winners by the same Swedish Academy.
Despite its contested origins, the prize has become one of the most prestigious recognitions in global academia — highlighting ideas that shape economic policy and deepen understanding of how innovation transforms societies.
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