The trio shares the Nobel Prize in Economics for work on innovation-based growth Business and economic news

The “false Nobel” recognizes work “that explains economic growth based on innovation.”

The Nobel Prize in Economics was awarded for work on the impact of technology on sustainable economic growth.

The Royal Swedish Academy of Sciences announced on Monday that the 2025 Svergis Riksbank Prize in Economic Sciences in Memory of Alfred Nobel will be shared between American-Israeli Joel Mokyr, Frenchman Philippe Aghion, and Canadian Peter Hewitt “for their explanation of economic growth based on innovation.”

The award was based on the idea that large numbers of people have been lifted out of poverty over the past two centuries as the world witnessed sustained economic growth with technology as the underlying cause. Previously, stagnation was the norm throughout most of human history, the jury said in a statement.

Mokyr, a professor at Northwestern University in the United States, received half the award for using historical records to determine what changed during the Industrial Revolution.

His research has shown that lasting growth depends on understanding why technology works, not just observing it work. Before this understanding developed during the Industrial Revolution, it was difficult to build on new discoveries and inventions.

The jury said that Aghion, from the College de France and the London School of Economics, and Hewitt, from Brown University in the United States, shared the other half of the prize “for the theory of sustainable growth through creative destruction.”

In a 1992 article, they developed a mathematical framework for “Creative destruction“, a concept popularized by Austrian economist Joseph Schumpeter in the early twentieth century, describing how new products replace old ones in the market.

The total cash prize is 11 million Swedish krona ($1.2 million), which Mokyr will share with Aghion and Hewitt.

The Economics Prize concludes this year’s Nobel season, which honored research in the field of the human immune system and its practical applications Quantum mechanics And development New forms of molecular engineering.

Leader of the Venezuelan opposition Maria Corina Machado He won the widely followed Nobel Peace Prize.

She surprised many when she gifted it to US President Donald Trump, who did not hide the fact that he believed he deserved it.

The Economics Prize is the only Nobel Prize that was not among the original five prizes that were established based on the will of the Swedish scientist Alfred Nobel, who died in 1896.

Instead, it was created through a donation from the Riksbank in 1968, leading critics to dub it a “fake Nobel Prize.”