The Nobel Prize for Economics was awarded to Joel Mokyr, Philippe Aghion and Peter Howitt on Monday for “explaining innovation-driven economic growth.” Their work was credited with helping economists better understand how ideas and technology succeed by disrupting established ways — a process as old as steam locomotives replacing horse-drawn wagons and as contemporary as e-commerce shuttering shopping malls.

“The Royal Swedish Academy of Sciences has decided to award the 2025 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel to Joel Mokyr, Philippe Aghion and Peter Howitt “for having explained innovation-driven economic growth” with one half to Mokyr “for having identified the prerequisites for sustained growth through technological progress” and the other half jointly to Aghion and Howitt “for the theory of sustained growth through creative destruction.” the Swedish Academy wrote on X.

One half of the 11 million Swedish Kronor award went to Mokyr “for having identified the prerequisites for sustained growth through technological progress”. The other half will be jointly shared by Aghion and Howitt “for the theory of sustained growth through creative destruction.

What did the Nobel Committee say?

“The 2025 laureates in economic sciences have taught us that sustained growth cannot be taken for granted. Economic stagnation, not growth, has been the norm for most of human history. Their work shows that we must be aware of (and counteract) threats to continued growth. These threats may come from a few companies being allowed to dominate the market, restrictions on academic freedom, expanding knowledge at regional rather than global levels, and blockades from potentially disadvantaged groups. If we fail to respond to these threats, the machine that has given us sustained growth, creative destruction, may cease working – and we would once again need to become accustomed to stagnation. We can avoid this if we heed the laureates’ vital insights,” the Committee explained.

‘Unexpected’ winners

Disbelief and shock were the primary reactions as the Nobel committee reached out to its Economics Prize winners on Monday. Joel Mokyr also recalled visiting the Nobel Prize ceremony in Stockholm ten years ago — when he didn’t for a moment imagine one day he would be on the stage.

“I had a whole list of people that I thought were going to win, and I wasn’t on it…Are you kidding me? I’m an economic historian. We don’t win Nobel Prizes,” Mokyr told them during a brief interview.

“I’m not one of these people who keeps the phone on, and the champagne in the fridge,” admitted Howitt.