The Nobel Memorial Prize in Economic Sciences 2025 was awarded to Joel Mokyr, Philippe Aghion, and Peter Howitt on October 13. This marks the final prize of the 2025 Nobel season. The economists were recognised “for having explained innovation-driven economic growth,” the Nobel Committee said.
Mokyr’s Contribution
One half of the prize went to Joel Mokyr. The committee noted he was honoured “for having identified the prerequisites for sustained growth through technological progress.” Mokyr used historical sources to study the causes of long-term economic growth. He showed that innovation can create continuous progress only if society understands why new ideas work.
BREAKING NEWS
The Royal Swedish Academy of Sciences has decided to award the 2025 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel to Joel Mokyr, Philippe Aghion and Peter Howitt “for having explained innovation-driven economic growth” with one half to Mokyr… pic.twitter.com/ZRKq0Nz4g7— The Nobel Prize (@NobelPrize) October 13, 2025
He explained that scientific explanations for inventions were often missing before the Industrial Revolution. This made it hard to build on previous discoveries. Mokyr also emphasised the need for societies to be open to new ideas and allow change to thrive.
Aghion and Howitt’s Work
The other half of the prize went jointly to Philippe Aghion and Peter Howitt. They studied sustained economic growth through the concept of “creative destruction.”
In 1992, they developed a mathematical model showing how new products replace old ones. When a new and better product enters the market, companies selling outdated technology lose out. The process is both creative and destructive. Innovation drives growth, but it can also eliminate older businesses.
The Nobel Economics Prize 2025
The Nobel Economics Prize is formally called the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel. It was established by Sweden’s central bank in 1968. Though not one of the original Nobel Prizes, it is awarded alongside the other prizes every December 10, the anniversary of Alfred Nobel’s death.
The 2024 Economics Prize went to Daron Acemoglu, Simon Johnson, and James A. Robinson. Their research explored why some countries are rich while others remain poor, highlighting the benefits of freer and more open societies.
Since 1968, the Economics Prize has been awarded 56 times to a total of 96 individuals. The prize recognises economists whose research advances understanding of economic growth, innovation, and societal development.
