Three renowned economists — Joel Mokyr, Philippe Aghion, and Peter Howitt — have been awarded the 2025 Nobel Prize in Economics for their groundbreaking contributions to understanding innovation-driven economic growth. The Royal Swedish Academy of Sciences announced the winners on Monday, recognizing their influential theory of “sustained growth through creative destruction.”
According to the Nobel committee, the trio’s research has profoundly shaped modern economic thought by explaining how technological innovation and competition fuel long-term prosperity. The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel will be shared among the three laureates, with one half awarded to Joel Mokyr of Northwestern University, USA, for his work identifying the conditions necessary for sustained technological progress. The remaining half will be shared by Philippe Aghion of the Collège de France, INSEAD, and the London School of Economics, and Peter Howitt of Brown University, USA, for their joint development of the theory of creative destruction.
Their work builds on the idea that continuous innovation — often at the expense of outdated technologies and industries — drives productivity and economic growth. This concept, rooted in Joseph Schumpeter’s notion of “creative destruction,” has helped economists and policymakers better understand how economies evolve and adapt to technological change.
The economics prize, formally known as the Bank of Sweden Prize in Economic Sciences in Memory of Alfred Nobel, was established in 1968 by Sveriges Riksbank, Sweden’s central bank, in honor of Alfred Nobel, the inventor of dynamite and founder of the original Nobel Prizes. It carries the same monetary award and prestige as the other Nobel categories.
Since its first presentation in 1969 to Ragnar Frisch and Jan Tinbergen, the prize has been awarded 56 times to 96 laureates, though only three women have received it prior to this year. While some purists note that the economics prize is not one of Nobel’s original five awards, it is presented alongside them each year during the Nobel Prize ceremonies on December 10, the anniversary of Alfred Nobel’s death.
The announcement of the economics laureates concludes this year’s series of Nobel Prize recognitions, which earlier honored achievements in medicine, physics, chemistry, literature, and peace.
