The Royal Swedish Academy of Sciences announced that the prize was given for their pioneering work on innovation-driven economic growth. Half of the prize was awarded to Mokyr, while the other half was shared between Aghion and Howitt. Historian-economist Joel Mokyr examined technological progress from historical and institutional perspectives, identifying the conditions that make economic growth sustainable.
Aghion and Howitt developed Joseph Schumpeter’s concept of "creative destruction," showing how innovation replaces old production methods and increases efficiency, making growth sustainable. According to this theory, economic growth occurs through continuous competition and innovation; however, during this process, old technologies and business models are replaced by new ones.
This year’s Nobel Prize once again highlighted that innovation is not only a technological driver but also a force behind economic and social transformation.
