Three Economists Win 2025 Nobel Prize in Economic Sciences

The Royal Swedish Academy of Sciences has awarded the 2025 Nobel Memorial Prize in Economic Sciences to Joel Mokyr, Philippe Aghion, and Peter Howitt, “for having explained innovation-driven economic growth.” 

Joel Mokyr receives half of the prize after pointing out critical conditions that must be present to ensure a long term growth through technological advancement. 
The other half belongs to Philippe Aghion and Peter Howitt, who were granted the theory of sustained growth due to creative destruction (when the new ideas or products supplant the old ones). 

Why This Matters

• Over the last two centuries, the world has seen steady economic growth far beyond anything in earlier eras. Their work helps explain why that change became possible. 
• Mokyr used historical data and analysis to show that to sustain growth, societies must not only invent new things but also understand why they work. 
• Aghion and Howitt developed a model showing how new innovations displace older ones in a continuous cycle. This “creative destruction” is key to long-run growth. 
• Their research also warns that growth isn’t automatic. If innovation is blocked, by entrenched firms or restrictive policies—economies can stall. 

What This Means for the Future

The decision of the Nobel committee is rather straightforward: it is crucial to contribute to the innovation, openness, and healthy competition on the market.

Policymakers, educators, and business leaders can take these lessons to heart:

• Promote research and development
• Avoid policies that stifle competition or protect legacy firms
• Invest in education and systems that help people adapt to change
• Recognize that growth depends on both new ideas and the destruction of outdated ones

At GlobalX Publications, we celebrate this advance in economic thought. This is a well-deserved congratulation to Mokyr, Aghion, and Howitt — the 2025 Nobel Memorial Prize in Economic Sciences reminds us that the advancement of ideas is what drives the progress of societies.