STOKHOLM (Enmaeya News) - October 14, 2025

The Nobel Prize in Economics was awarded on Monday to Joel Mokyr, Philippe Aghion and Peter Howitt for their pioneering research on how innovation drives long-term economic growth.

The Royal Swedish Academy of Sciences said the trio’s work “transformed understanding of how technology and innovation power the economy,” the Washington Post reported. According to the Post, Aghion said in a publically broadcasted call with the academy that he would use the prize money to fund research on artificial intelligence and environmentally sustainable growth.

Mokyr received half the award, worth 11 million Swedish crowns ($1 million), for his historical analysis linking technological progress to long-term growth. The other half went to Aghion and Howitt for their 1997 theory of “creative destruction,” which explains how innovation continuously replaces old technologies and fuels progress.

Their findings suggest governments can foster long-term growth by investing in R&D, innovation, and open competition.

The academy said the economists’ work highlights that long-run prosperity depends on continuous innovation rather than accumulation of capital and labor. Economists said the award underscores the importance of research and competition policies that foster innovation at a time of rapid technological change. 

Last year’s prize in economics was awarded to Daron Acemoglu and Simon Johnson of the Massachusetts Institute of Technology, and James A. Robinson of the University of Chicago for their research on prosperity gaps between countries.

The economics award concludes this year’s Nobel announcements.