The Sveriges Riksbank Prize in Economic Sciences for 2025 goes to Joel Mokyr, Philippe Aghion, and Peter Howitt for their work on innovation-driven economic growth. Mokyr receives half the prize for identifying conditions for sustained growth, while Aghion and Howitt jointly receive the other half for their theory of creative destruction.

 

The Royal Swedish Academy of Sciences announced on October 13, 2025 that the prestigious Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel has been awarded to Joel Mokyr, Philippe Aghion, and Peter Howitt. 

The laureates received the award for their groundbreaking insights into how innovation can drive sustained economic growth. 

Joel Mokyr, a professor at Northwestern University, received half the prize "for having identified the prerequisites for sustained growth through technological progress". As an economic historian, he emphasized the importance of historical context and the societal openness to new ideas. 

Philippe Aghion is a professor at Collège de France/LSE/INSEAD and Peter Howitt a professor at Brown University. The were jointly honored with the other half "for the theory of sustained growth through creative destruction". The concept of creative destruction illustrates how new innovations lead to the obsolescence of older products, thereby fueling economic growth but also creating conflicts that must be managed effectively to prevent stagnation. 

In an accompanying paper "Scientific Background" paper, the Prize Committee commented on Mokyr's contribution as showing...

"...how growth became sustained as a result of a set of key prerequisites that were not jointly present prior to the Industrial Revolution, but have been since then.
Of central importance is how science interacts with technology, i.e., economic production in practice and that society welcomes technological change. One of his main study objects, quite naturally, was the Industrial Revolution, since it defined the transition between the two [pre-industrial and industrial] regimes."

The paper summarizes the contribution of Aghion and Howitt by noting how they...

"...were inspired by the sustained economic growth of modern times and how disruptive this process is underneath the aggregate. They developed a theory of growth through “creative destruction”, describing the process of innovation and “business stealing” and how the long-run growth rate of an economy is determined as a result. The theory contains fundamental building blocks of how new technology surpasses old, where some firms win at the expense of other firms, in an economy characterized by constant churning."

In their research, the laureates highlight that the past two centuries marked an unprecedented period of sustained economic growth, lifting millions out of poverty. They elucidate how rapid advances in technology have perpetuated a cycle where old practices are continuously replaced by new methods, ultimately improving living standards worldwide. 

John Hassler, Chair of the Prize Committee, explained the choice of winners:

“The laureates’ work shows that economic growth cannot be taken for granted. We must uphold the mechanisms that underlie creative destruction, so that we do not fall back into stagnation.”

The total prize money awarded this year amounts to 11 million Swedish kronor (around 1 million Euro, or 1.15 million US Dollars), divided among the three laureates. The full details of their research and findings can be further explored via the official Nobel Prize website.

A "Popular Science Background" paper can be downloaded here.

The more extensive "Scientific Background" paper can be downloaded here.

Read more about the 2025 Laureates:

Joel Mokyr: Profile page at Northwestern University

Philippe Aghion: Personal Website

Peter Howitt: Profile page at Brown University

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_{^{Image Credits: Johann Jarnestad / The Royal Swedish Academy of Sciences / nobelprize.org / Tamara Sushko/Norrphoto via Canva
Main Source: Press release. NobelPrize.org. Nobel Prize Outreach 2025. Mon. 13 Oct 2025.}}