​​​​​​​New Delhi,Oct 13: Ace economists Joel Mokyr, Philippe Aghion and Peter Howitt clinched the Nobel Prize 2025 in Economics jointly for significantly contributing to the world economy.

The final Nobel announced on Monday, for Economics, went to Joel Mokyr (Northwestern University, the US), Philippe Aghion (College de France and INSEAD, Paris, France) and Peter Howitt (Brown University, the US) on Monday for their significant theories on innovation-driven sustained economic growth.

While with one half of the coveted prize went to Mokyr “for having identified the prerequisites for sustained growth through technological progress”, the other half was awarded jointly to Aghion and Howitt “for the theory of sustained growth through creative destruction”, said the Royal Swedish Academy of Sciences, while presenting the “Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2025”.

“This year’s laureates in the Economic Sciences, Joel Mokyr, Philippe Aghion and Peter Howitt, explain how innovation provides the impetus for further progress,” said the Academy.

Mokyr used historical sources as one means to uncover the causes of sustained growth becoming the new normal.

He demonstrated that if innovations are to succeed one another in a self-generating process, we not only need to know that something works, but we also need to have scientific explanations that answers the questions,why.

“The latter was often lacking prior to the industrial revolution, which made it difficult to build upon new discoveries and inventions. He also emphasised the importance of society being open to new ideas and allowing change,” according to a statement by the Academy.

Meanwhile, Aghion and Howitt also studied the mechanisms behind sustained growth.

In an article published from 1992, they constructed a mathematical model for what is called Creative Destruction: when a new and better product enters the market, the companies selling the older products lose out.

The innovation represents something new and is thus creative. However, it is also destructive, as the company whose technology becomes passe is outcompeted.

In different ways, the laureates show how creative destruction creates conflicts that must be managed in a constructive manner. Otherwise, innovation will be blocked by established companies and interest groups that risk being put at a disadvantage.

“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,” said John Hassler, Chair of the Committee for the Prize in Economic Sciences.

Daron Acemoglu and Simon Johnson from the Massachusetts Institute of Technology (MIT) and James A. Robinson from the University of Chicago in the US were awarded the coveted Nobel Prize 2024 in Economics sciences for their innovative studies of how institutions are formed and affect prosperity that makes poor and rich nations despite potentially having equitable resources.