The 2025 Nobel Memorial Prize in Economic Sciences has been awarded to Joel Mokyr, Philippe Aghion, and Peter Howitt "for having explained innovation-driven economic growth."

One half of the prize went to Joel Mokyr "for having identified the prerequisites for sustained growth through technological progress," while the other half was shared by Philippe Aghion and Peter Howitt "for the theory of sustained growth through creative destruction."

Joel Mokyr works at Northwestern University. Philippe Aghion is affiliated with the Collège de France and the London School of Economics. Peter Howitt is from Brown University.

The award, officially called the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, was established in 1968 by Sweden’s central bank to honour Alfred Nobel. Although it was not part of Nobel’s original will, it is presented alongside the other Nobel prizes every December 10, marking Nobel’s death in 1896.

The laureates’ research shows why sustained economic growth cannot be taken for granted. Their work highlights how threats like market monopolies, restrictions on academic freedom, uneven knowledge expansion, and social obstacles can hinder progress if not addressed.

Over the last two centuries, the world has experienced sustained growth for the first time, lifting millions out of poverty and creating a foundation for prosperity. The Nobel Prize organisation said, "Over the last two centuries, for the first time in history, the world has seen sustained economic growth. This has lifted vast numbers of people out of poverty and laid the foundation of our prosperity."

Philippe Aghion and Peter Howitt developed the idea of creative destruction, showing how new innovations replace old products, benefit society, and drive investment and growth under changing market conditions.

Joel Mokyr’s research highlights the importance of a constant flow of knowledge, both theoretical and practical, and shows that societies must stay open to new ideas and adapt to change for innovation to create long-term prosperity.

Reacting to the award, Aghion said he was surprised and planned to invest his prize money in his research laboratory. He also warned, "I am not welcoming the protectionist way in the US. That is not good for ... world growth and innovation."

The announcement concludes the 2025 Nobel season, following prizes in medicine, physics, chemistry, literature, and peace. The economics prize has been awarded 56 times to 96 laureates since 1969. The oldest winner is Leonid Hurwicz, at 90, and the youngest is Esther Duflo, at 46.