• Joel Mokyr, Philippe Aghion, and Peter Howitt win the 2025 Nobel Prize in Economics.
• The award recognizes their explanation of innovation-driven economic growth.
• Key concepts include "creative destruction," where new products replace older technologies.
• Their research highlights the necessity of countering threats to economic growth.
• The prize consists of 11 million Swedish crowns ($1.2 million).

On October 13, 2025, the Royal Swedish Academy of Sciences awarded the Nobel Prize in Economics to Joel Mokyr, Philippe Aghion, and Peter Howitt for "having explained innovation-driven economic growth." Mokyr received half the prize for identifying the prerequisites for sustained growth through technological progress, while Aghion and Howitt shared the other half for their theory of sustained growth via creative destruction, a fundamental concept in economics that describes how new innovations supplant old technologies, increasing overall productivity and quality of life, according to Le Monde, India Times, and Reuters.

The prize, worth 11 million Swedish crowns (approximately $1.2 million), acknowledges the laureates' critical posts on how innovation and technological advancements have propelled sustained economic growth over the past two centuries. The Nobel committee emphasized that economic stagnation has historically been prevalent, and ongoing progress cannot be assumed, as threats like market monopolies and restraints on academic freedom need to be actively countered to maintain growth, as noted by India Times and Los Angeles Times.

Joel Mokyr's research focuses on the Industrial Revolution, asserting that the relationship between technology and economic growth is deeply rooted in understanding innovation's practical applications rather than merely observing its existence. He argues that nations must develop an adaptable culture of growth and continuously seek innovative advancements. Meanwhile, Aghion and Howitt created a mathematical model detailing the creative destruction process, highlighting the dynamic nature of economy and technology, according to AA and The Jakarta Post.

A particularly noteworthy aspect discussed during the announcement is the potential dangers posed by recent protectionist trade policies, which Aghion expressed could hinder growth by limiting market interactions and innovation. He called for a careful balance between competition and industrial policy to ensure a forward-looking approach to growth that maximizes technological advantages, as detailed by NPR and NPR.

Mokyr, Aghion, and Howitt's work serves as a critical reminder of the importance of ensuring sustainable economic growth practices that embrace innovation while being mindful of socio-economic changes spurred by technological advancements. "The laureates' work reminds us we should not take progress for granted," noted Kerstin Enflo of the Nobel committee, reiterating the need to address contemporary challenges while promoting a knowledge-based economy, according to TRT Global and Al Jazeera.