Nobel Economics Prize 2025: The Royal Swedish Academy of Sciences has awarded the 2025 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel to three renowned economists — Joel Mokyr, Philippe Aghion, and Peter Howitt — for their groundbreaking contributions to understanding innovation-driven economic growth.
This year’s prize recognizes two complementary strands of thought shaping modern economics:
- Joel Mokyr receives one half of the award “for having identified the prerequisites for sustained growth through technological progress.” His work highlights how scientific knowledge, culture, and institutional support enable long-term development.
- The other half is jointly shared by Philippe Aghion and Peter Howitt “for the theory of sustained growth through creative destruction.” Their influential research explains how continuous innovation, competition, and the replacement of old technologies are central to economic expansion.
The award includes a gold medal, a diploma, and a $1.2 million prize.
A Prize Rooted in Modern Economic Thought
Often referred to as the “Nobel Prize in Economics,” this award is not part of Alfred Nobel’s original five prizes. It was established in 1968 by Sweden’s central bank, Sveriges Riksbank, in his memory. Since its inception, the prize has been awarded 56 times to 96 laureates.
Despite criticism from some detractors who call it a “false Nobel,” many scholars argue that economics today plays a defining role in policymaking and global development. Prize committee member Johan Dahlen noted:
“If Alfred Nobel had written his will today, I believe that economics would be included, as it is so important for understanding world events and improving our societies.”
Building on a Legacy of Global Insight
Last year’s recipients — Daron Acemoglu, Simon Johnson, and James A. Robinson — were honored for exploring why some nations prosper while others lag. Their work emphasized how freedom, strong institutions, and openness are central to economic success.
The 2025 Nobel season has so far recognized two women:
- Mary Brunkow (Medicine co-recipient)
- Maria Corina Machado (Nobel Peace Prize laureate and Venezuelan opposition leader)
Why This Award Matters
The selection of Mokyr, Aghion, and Howitt underscores the growing importance of innovation, technological change, and adaptive economies in tackling global challenges such as inequality, productivity slowdown, and sustainability.
Their research helps shape:
- Industrial policy
- Entrepreneurship strategies
- Economic reform and resilience planning
- Technological investment frameworks
