Why Joel Mokyr Just Won the 2025 Nobel Prize in Economics — And What It Means
The 2025 Nobel Prize in Economic Sciences has been awarded to Joel Mokyr, Philippe Aghion, and Peter Howitt for their groundbreaking work on how innovation drives sustainable economic growth.
Mokyr is honored for identifying the prerequisites for sustained growth through technological progress, while Aghion and Howitt receive credit for developing a formal theory of “creative destruction” — the continuous process by which new ideas and technologies displace the old.
What the Laureates Discovered
Over the past two centuries — for the first time in human history — the world has experienced persistent economic growth, lifting living standards globally. The laureates’ work provides insight into how that happened — and how it can continue.
- Joel Mokyr (Northwestern University) draws on history to show that innovation must be self-sustaining. It’s not enough to know something works; societies must also understand why it works. That scientific grounding enables future generations to build on prior ideas.
- Philippe Aghion and Peter Howitt formalized how growth occurs through creative destruction. When new technologies emerge, they outperform and replace older ones — that conflict is what drives progress.
The Royal Swedish Academy of Sciences emphasized that economic stagnation has been far more common than growth for much of history. Their work underscores that growth is not automatic — it must be actively sustained.
More on Mokyr: His Story & Scholarship
- Birth & Identity: Mokyr was born in 1946 in Leiden, Netherlands. He holds American and Israeli citizenship.
- Academic life: He is the Robert H. Strotz Professor of Arts and Sciences at Northwestern University, with a joint role in economics and history.
- Key concepts: Mokyr argues that three elements are crucial for sustained growth:
- Useful knowledge — ideas that can be applied
- Mechanical competence — ability to build and use new technologies
- Institutions open to disruption — openness to change so innovation can take root
In a recent interview, Mokyr said he was surprised by the award. His first reaction, he said, was still trying to “absorb it.”
Why This Prize Matters Now
- The prize is 11 million Swedish kronor (roughly half to Mokyr, the other half split between Aghion and Howitt).
- Their work is especially relevant in an age of AI, biotech, and rapid technological change. It reminds us that innovation must be supported by policy, institutions, and competition — otherwise growth can falter.
- As some governments debate de-globalization, protectionist policies, or limited support for scientific research, the laureates stress that openness and competition are essential to avoid stalling progress.
श्रवण कुमार ओड़ जालोर जिले के सक्रिय पत्रकार और सामाजिक विषयों पर लिखने वाले लेखक हैं। वे “जालोर न्यूज़” के माध्यम से जनहित, संस्कृति और स्थानीय मुद्दों को उजागर करते हैं। उनकी पत्रकारिता का उद्देश्य है—सच दिखाना और समाज की आवाज़ बनना।
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