The Nobel Prize in Economic Sciences 2025 has been awarded to three distinguished economists: Joel Mokyr, Philippe Aghion, and Peter Howitt. The Royal Swedish Academy of Sciences made the announcement, honoring the laureates “for having explained innovation-driven economic growth,” a contribution that has reshaped the understanding of how economies evolve and prosper.
This year’s prize has been divided into two parts: one half has been awarded to Joel Mokyr “for having identified the prerequisites for sustained growth through technological progress,” while the other half is shared between Philippe Aghion and Peter Howitt “for the theory of sustained growth through creative destruction.” The total prize amount is 11 million Swedish kronor.
Joel Mokyr’s research focuses on the historical foundations of economic growth. His work highlights how cultural attitudes towards innovation, science, and technology can serve as critical drivers of long-term prosperity. Mokyr’s analysis provides valuable insights into how knowledge and ideas have historically enabled societies to escape stagnation and achieve sustained development. His findings emphasize the role of human capital, institutional frameworks, and technological curiosity in shaping modern economies.
Philippe Aghion and Peter Howitt, on the other hand, are recognized for their groundbreaking “creative destruction” model of economic growth. Their theory explains how innovation leads to economic progress by replacing outdated technologies and business models with new ones. This dynamic process, while sometimes disruptive, is a key force behind productivity gains and rising living standards.
The Royal Swedish Academy noted that their research has not only advanced academic understanding but has also influenced real-world economic policy. Governments and international institutions have used their frameworks to design policies encouraging innovation, investment in research and development, and technological advancement.
The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, which is not part of the original Nobel Prizes established in 1895, was introduced in 1968 by Sveriges Riksbank (Sweden’s central bank). Since then, it has honored several economists whose work has significantly shaped economic theory and practice.
Announcing the 2025 prize, the Academy emphasized the relevance of innovation-driven growth in addressing global economic challenges. At a time when many economies are undergoing rapid digital transformation, the laureates’ work offers critical guidance on how innovation can be harnessed for inclusive and sustainable development.
This year’s recognition also highlights the growing importance of technological change as a central driver of economic performance. By examining both historical and theoretical perspectives, Mokyr, Aghion, and Howitt have provided tools that help policymakers and businesses navigate a rapidly changing global landscape.
The Nobel Prize award ceremony will be held later this year in Stockholm, where the laureates will receive their medals and diplomas.
