By Admin 
The Royal Swedish Academy of Sciences has awarded the Sveriges Riksbank Economic Sciences Prize in Memory of Alfred Nobel for 2025 to Joel Mokyr (US), Peter Howitt (US), and Philip Aghion (UK). All three have been honored for ‘explaining innovation-based economic growth’. Joel is associated with Northwestern University of America, Philip is associated with The London School of Economic and Political Science in England and Peter is associated with Brown University of America.
Prize money will be distributed
According to the Nobel Prize Organization, half of the prize will be awarded to Joel Mokyr for identifying the conditions necessary for sustainable development through technological progress and the other half jointly to Philippe Aghion and Peter Howitt for the theory of sustainable development through creative destruction. Mokyr used historical sources as a means to uncover the reasons why sustainable development has become the new normal.
Aghion and Howitt also studied the mechanisms behind continued evolution. In a 1992 article, he created a mathematical model called creative destruction and explained that when a new and improved product enters the market, companies selling the old product stand at a loss. New products and methods of production continue to replace old methods, and this process never ends. This is the basis for sustained economic growth, which improves the quality of life, health and standards of living of people around the world.
Who gets this award?
This award is given to those economists whose research has made a major contribution to understanding the economy and solving its problems. It is called the Nobel Prize in Economics, but it was not technically one of the original five prizes in Nobel’s will, but was established by the Swedish Central Bank in 1969. It selects the winners of the Royal Swedish Academy of Sciences Awards.