Aghion, Howitt, Mokyr win Economics Nobel; laureates warn on trade barriers, urge green innovation
The 2024 Nobel Prize in Economic Sciences was awarded to Philippe Aghion, Peter Howitt and Joel Mokyr for research showing how science and technology drive long‑run economic growth—Aghion and Howitt for the theory of creative destruction that ties innovation and competition to sustained growth, and Mokyr for explaining how Enlightenment science was “operationalized” into the practical tinkering and institutions that powered Britain’s Industrial Revolution. The laureates warned that rising protectionism threatens openness and growth, urged policies to steer innovation toward green technologies (including a carbon tax), cautioned that AI “superstar” firms could entrench dominance without careful regulation, and will share a prize of 11 million Swedish kronor (≈$1.2 million).
📌 Key Facts
- The 2025 Nobel Prize in Economics was shared by Philippe Aghion, Peter Howitt and Joel Mokyr for work on technology, economic growth and the concept of creative destruction; Aghion and Howitt for the theory of sustained growth via creative destruction and Mokyr for explaining when and why technology leads to growth.
- The prize amount is 11 million Swedish kronor (about $1.2 million).
- The Nobel committee, via Kerstin Enflo, warned “we should not take progress for granted,” stressing the significance of the past 200 years of growth.
- Joel Mokyr’s work argues Britain’s Industrial Revolution succeeded because it ‘operationalized’ Enlightenment science—linking large scientific breakthroughs to many practical inventions by skilled tinkerers and entrepreneurs—and emphasizes the role of British political institutions (notably Parliament) in tolerating disruptive ‘creative destruction.’
- All three laureates were born outside the United States but earned doctorates at U.S. universities; institutional affiliations cited include Northwestern (Mokyr), Brown (Howitt) and Collège de France/London School of Economics (Aghion).
- Aghion warned that recent protectionist moves—he specifically cited the Trump administration—are obstacles to growth, saying openness is a driver of growth and expressing concern about “dark clouds... pushing for barriers to trade and openness.”
- Aghion urged policies to redirect innovation toward green technologies (for example, a carbon tax), arguing firms will not “spontaneously innovate green” without such incentives.
- Aghion also cautioned that, without careful policing, AI ‘superstar’ firms could dominate markets and block future competitors, posing risks to dynamic competition and innovation.
📊 Analysis & Commentary (1)
"An opinion piece that welcomes the 2025 Nobel in economics for honoring long‑run growth research (Aghion, Howitt, Mokyr), arguing it highlights the primacy of innovation and creative destruction for prosperity and urging policies that keep markets competitive and direct technological change toward public goals (climate, broadly shared gains) while addressing concentration and distributive consequences."
📰 Sources (3)
- NPR details Joel Mokyr’s thesis that Britain’s Industrial Revolution took off because it ‘operationalized’ Enlightenment science—linking ‘macro’ scientific breakthroughs to many practical ‘micro’ inventions by skilled tinkerers and entrepreneurs.
- Adds emphasis on the role of British political institutions (Parliament) in tolerating disruptive ‘creative destruction,’ helping new technologies overcome entrenched interests.
- Reiterates that Aghion and Howitt share the prize for the theory of sustained growth via creative destruction, connecting their work to Mokyr’s historical narrative of technology-driven growth.
- Prize amount: 11 million Swedish kronor (~$1.2 million).
- Quote: Kerstin Enflo (Nobel committee) said, “we should not take progress for granted,” highlighting the past 200 years of growth.
- Aghion warned Trump administration protectionist policies are obstacles to growth: “Openness is a driver of growth... I see dark clouds... pushing for barriers to trade and openness.”
- Aghion urged redirecting innovation toward green tech via policies like a carbon tax, noting firms won’t “spontaneously innovate green.”
- Aghion cautioned that without careful policing, AI ‘superstar’ firms could dominate and block future competitors.
- All three laureates were born outside the U.S. but earned doctorates at U.S. universities; institutional affiliations include Northwestern (Mokyr), Brown (Howitt), Collège de France/LSE (Aghion).