The 2025 Nobel Prize in Economic Sciences has been awarded to Joel Mokyr, Philippe Aghion, and Peter Howitt for their groundbreaking research on the drivers of long-term economic growth, the Royal Swedish Academy of Sciences announced on Monday.

Mokyr, professor at Northwestern University and Tel Aviv University, will receive half of the prize “for identifying the cultural and historical foundations of sustained technological progress.” His interdisciplinary work, combining economics, history, and philosophy, shows how the spread of “useful knowledge” during the Enlightenment laid the foundation for the Industrial Revolution and modern prosperity.

The other half will be shared by Philippe Aghion (Collège de France and London School of Economics) and Peter Howitt (Brown University) “for advancing the theory of creative destruction as the engine of innovation-driven growth.” Their work in the 1990s formalized the idea that economic progress arises not from stability but from disruption, where new technologies and firms replace outdated ones, fueling dynamic growth.

Mokyr’s research highlights how institutions, education systems, and open intellectual environments sustain innovation over centuries. Meanwhile, the Aghion-Howitt model of endogenous growth has become a cornerstone of macroeconomic theory, explaining how competition, R&D, and policy influence innovation cycles—and why overprotecting incumbents can hinder progress.

“Their combined insights help us understand not just that economies grow, but why and how,” said Professor Eva Nyberg, chair of the selection committee. “Mokyr gives us the deep roots; Aghion and Howitt provide the mechanism. Together, they offer a powerful explanation of one of economics’ most important questions: What drives sustained prosperity?”

Their work continues to influence global policymaking on innovation, industrial strategy, education reform, and climate technology. Each laureate will receive a diploma, a gold medal, and a share of the 11-million-krona prize (about $1.05 million USD) at the formal ceremony in Stockholm on 10 December 2025.