The Nobel Memorial Prize in Economic Sciences was awarded to Joel Mokyr, Philippe Aghion, and Peter Howitt for their contributions to the understanding of innovation's role in economic growth, particularly the concept of "creative destruction." This term describes how new technologies and innovations replace older ones, a principle notably associated with economist Joseph Schumpeter.
Joel Mokyr, an economic historian from Northwestern University, emphasizes long-term historical trends, while Aghion, from the Collège de France and the London School of Economics, along with Howitt of Brown University, utilize mathematical models to explore the dynamics of creative destruction. The Nobel committee recognized their complementary approaches, which enhance the understanding of how innovation drives economic progress.
Mokyr, who expressed surprise at receiving the honor, suggested that he would have considered it more likely for him to be elected Pope than to win the Nobel Prize. Despite nearing 80, he has no plans to retire, stating that his current role is a fulfillment of his lifelong aspirations. Aghion, also taken aback by the award, indicated that he would allocate his prize money towards his research laboratory.
The laureates' work underscores the necessity of maintaining mechanisms that support creative destruction to avoid economic stagnation. John Hassler, chair of the Nobel committee, highlighted that economic growth is not guaranteed and depends on fostering such mechanisms.
The prize, officially known as the Bank of Sweden Prize in Economic Sciences in Memory of Alfred Nobel, includes an award of 11 million Swedish kronor, divided between Mokyr and the other two economists. This recognition adds to the rich history of the Nobel Prizes, which are presented annually on December 10, the anniversary of Alfred Nobel's death.