The 2025 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel has been awarded to Joel Mokyr, Philippe Aghion, and Peter Howitt for their groundbreaking work on innovation-driven economic growth. The Royal Swedish Academy of Sciences recognized their contributions in explaining how sustained economic growth is not inevitable and how innovation plays a crucial role in driving long-term prosperity.
Joel Mokyr was honoured for identifying the prerequisites for sustained growth through technological progress. His research utilized historical data to uncover the factors necessary for continuous economic advancement.
Philippe Aghion and Peter Howitt were jointly recognized for developing the theory of sustained growth through creative destruction. Their 1992 mathematical model demonstrated how technological advancements lead to economic growth by replacing outdated products and processes with more efficient ones.
The prize carries a monetary award of 11 million Swedish kronor (approximately $1.2 million), with one half awarded to Joel Mokyr and the other half jointly to Philippe Aghion and Peter Howitt. The Nobel Prize in Economic Sciences, established by Sweden’s central bank in 1968, is awarded annually for outstanding contributions to the field of economics.
This year’s award highlights the importance of understanding the dynamics of innovation and its impact on economic development. The laureates’ work provides valuable insights into how economies can foster sustained growth through technological progress and creative destruction.
The formal award ceremony will take place on December 10, 2025, in Stockholm, Sweden, where the laureates will receive their Nobel Prizes.
