NOBEL ECONOMICS PRIZE AWARDED TO THREE FOR RESEARCH ON INNOVATION AND ECONOMIC GROWTH. (PHOTO).

Nobel economics prize awarded to three for research on innovation and economic growth

Joel Mokyr, Philippe Aghion, and Peter Howitt were awarded the Nobel Memorial Prize in Economic Sciences on Monday for their groundbreaking research on how innovation drives economic growth and the process of replacing older technologies with new ones, known as “creative destruction.”

The three laureates bring different but complementary perspectives to the field. Mokyr, an economic historian at Northwestern University, analyzed long-term trends using historical sources. Aghion, of the Collège de France and the London School of Economics, and Howitt, a Canadian-born economist at Brown University, applied mathematical models to explain the dynamics of creative destruction. Mokyr, 79, said he was shocked by the honor, joking that he felt more likely to be elected Pope than to win the Nobel Prize in economics. Aghion, 69, called the recognition “breathtaking” and said he planned to invest the prize money in his research laboratory.

The committee praised the trio for clarifying how innovations replace outdated technologies in a self-sustaining cycle of economic progress. Mokyr’s work demonstrated the importance of scientific understanding for successful innovation, while Aghion and Howitt created models quantifying the mechanisms of sustained growth. Their research builds on the concept introduced by economist Joseph Schumpeter in 1942, showing that economic growth depends on continual technological renewal.

Aghion, who has advised French President Emmanuel Macron and co-chaired France’s Artificial Intelligence Commission, cautioned against protectionist policies, noting they could hinder global growth and innovation. The prize, totaling 11 million Swedish kronor (nearly $1.2 million), is split between Mokyr and the duo of Aghion and Howitt, and includes an 18-carat gold medal and a diploma.

Officially named the Bank of Sweden Prize in Economic Sciences in Memory of Alfred Nobel, the award was established in 1968 and is presented alongside the five original Nobel Prizes each Dec. 10. To date, 99 economists have received the prize, with only three women among the laureates.