Tuesday, October 14, 2025-Three economists have been awarded the 2025 Nobel Prize in Economics for their pioneering research on innovation, economic growth, and the concept of “creative destruction.”
The Royal Swedish Academy of Sciences honored Philippe Aghion, Peter Howitt, and Ufuk Akcigit, recognizing their decades of work explaining how technological change and competition drive long-term prosperity. Their theories have reshaped how policymakers and businesses understand the balance between innovation, inequality, and market stability.
The laureates’ work builds on the idea that progress often comes through the displacement of older industries by new ones, a process Aghion and Howitt famously termed creative destruction, echoing the ideas of Joseph Schumpeter.
Their research has been instrumental in shaping modern economic strategies around innovation, particularly in the tech and green energy sectors. Economists worldwide praised the decision, noting that their findings help explain the link between entrepreneurship, productivity, and social mobility in rapidly evolving economies.
Reactions across the academic and political world were overwhelmingly positive. Many see the award as a recognition of the crucial role that innovation plays in addressing global challenges like climate change and automation.
Analysts believe their work will continue to influence how governments design education systems, regulate markets, and invest in research. As Aghion said in his acceptance remarks, “Creative destruction is not just about disruption it’s about renewal, progress, and the endless capacity of societies to reinvent themselves.”
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