Nobel Laureates Who Changed How We See Growth

Joel Mokyr, Philippe Aghion, and Peter Howitt have secured the 2025 Nobel Prize in Economics for revealing how innovation and “creative destruction” drive economic growth. Their work shows how new technologies replace old ones, boosting living standards, health, and quality of life.

Growth Is Not Guaranteed

The Royal Swedish Academy of Sciences has emphasized that economic progress is fragile. For much of human history, stagnation was the norm. The laureates highlight the need to nurture innovation while defending against threats that could stall progress.

Policy Challenges in the Spotlight

Mokyr warned that political interference in U.S. research and higher education risks eroding global scientific leadership. Aghion argued that Europe must learn from the U.S. and China in balancing competition with strategic industrial policy. Howitt questioned protectionist trade measures, noting that shrinking markets limit opportunities for innovation and long-term prosperity.

At Algorithm Research, we see the Nobel win as a vivid reminder of the central role of innovation in economic resilience. As AI, biotech, and other emerging technologies reshape the global economy, countries that embrace openness, invest strategically, and balance competition with industrial policy will thrive. Policies that restrict knowledge sharing or prioritize short-term politics risk slowing growth. The laureates’ insights underscore that innovation isn’t just a driver of prosperity — it’s the safeguard of the future.