3 share Nobel Prize in Economics for work on technology, growth and creative destruction

"All three men were born outside the United States, but each received his doctorate from a university in the U.S. Mokyr pioneered a theory of how technological change and improvement has helped to fuel two centuries of growth and higher living standards. Howitt and Aghion followed up with a theory on how creative destruction allows one technological advance to give way to another, so what's a breakthrough in one generation is obsolete by the next."

""The laureates' work reminds us we should not take progress for granted," said Kerstin Enflo of the Nobel committee. "During the last 200 years, the world has seen more economic growth than ever in human history. This growth has increased our living standards in so many different ways. But still 200 years is a short period compared to the long history of stagnation we saw before.""

"During the awards announcement, Aghion cautioned that the Trump administration's protectionist trade policies could be a roadblock to further advances. "Openness is a driver of growth," Aghion said. "Anything that gets in the way of openness is an obstacle to growth. So I see dark clouds currently accumulating, pushing for barriers to trade and openness." He also stressed the need to reconcile economic growth with environmental preservation, and to promote competition in artificial intelligence."

Three economists received the Nobel Prize in economics for modeling how cycles of technological innovation drive economic growth. Mokyr showed how sustained technological change and improvement powered two centuries of rising living standards. Howitt and Aghion formalized creative destruction, demonstrating how successive breakthroughs replace prior technologies. The laureates emphasize the need for policies to manage displacement, including safety nets for workers, to prevent conflict that could hinder growth. They stress that openness to trade, competition (including in artificial intelligence), and policies reconciling growth with environmental preservation are important for continued progress.

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