Technological innovation research wins 2025 Nobel Prize in Economics

The 2025 Nobel Prize in Economics was awarded to Joel Mokyr, Philippe Aghion, and Peter Howitt for their pioneering research on how innovation and “creative destruction” drive economic growth.

Their work highlights how new technologies replace old ones, raising living standards and improving health and quality of life worldwide.

The Royal Swedish Academy of Sciences decided to award 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.'

Speaking to Stephen Grootes on The Money Show, Adrian Saville, Professor of Economics and Finance at Gordon Institute of Business Science says their research is essentially looking for the source of economic growth.

"That begs a question, what is it that causes, not just growth, but sustained growth. And enter innovation, technology which are able to double-down on what you already have and produce not only more things, but more things, and new things differently, so that you have this cocktail of innovation that's technologically fed and it translates into well-being of a society," says Saville.

"What's so valuable here is that you've got an economic historian being awarded half of the prize, and this means we're gathering up evidence, rather than just ideas," adds Saville.

Listen to the interview in the audio player below.