The Nobel Prize for Economic Sciences 2025 was awarded the company Joel Mokyr, Philippe AGHion and Peter Howitt for their contribution in economic growth based on innovation. Mocker’s share recognizes his work on technological progress, while Agu and Howitt are honored by their theory of creative destruction.
The Official Handle of Nobel Prize in and Post Informed, “The Royal Swedish Academy of Sciences has decided to Award the 2025 Sveriges Riksbank Prize in Economic Sciences Innovation-Driven Economic Growth With One Half To the Witches “For Having Identified the Prerequisites for Sustained Growth Through Technological Progress” and the other half together to AGHion and Howitt “For permanent growth theory”.
What are the contributions of the MCO, AGHion and Howitt?
It is assumed that technological progress affects everyone quickly and constantly replaces old products and methods with new ones. This continuing cycle leads to economic growth, which has led to an improvement in the standard of living, health and the overall quality of life around the world.
But that was not always true. In fact, stagnation was the default for most human history. Although there were occasional significant discoveries that occasionally improved their standard of living and increased revenues, growth has generally emerged after some time, the Nobel Price Committee said.
Joel Mkydyr analyzed historical resources to understand how permanent growth has become the norm. He showed that in order to succeed in a self -sufficient cycle, it is not enough to know that something works, it is also a necessary scientific explanation. Such explanations often lacked before the industrial revolution, which prevents further development of new discoveries and inventions. He also emphasized the key role of an open society perceptive to new ideas and changes.
Meanwhile, Philippe Aggion and Peter Howitt have explored permanent growth mechanisms. In their 1992 article, they developed a mathematical model of creative destruction, a process where the introduction of a new, excellent product is caused by a decline in selling companies by outdated products. Innovation is considered creative because it represents something new, but it is also destructive because the company with outdated technology is expelled from the market.
(Tagstotranslate) Sveriges Riksbank Prize (T) Economic Sciences (T) Alfred Nobel (T) Innovative Economic Growth
