Core Insights - The 2025 Nobel Prize in Economic Sciences was awarded to Joel Mokyr, Philippe Aghion, and Peter Howitt for their research on "innovation-driven economic growth" [1] - Mokyr received half of the prize for clarifying the necessary conditions for technological progress to drive sustained growth, while Aghion and Howitt shared the other half for their theory on sustained growth driven by the process of "creative destruction" [1] Group 1: Joel Mokyr's Contributions - Mokyr emphasizes that knowledge is the spark for modern growth, arguing that technological progress is driven by the accumulation and dissemination of knowledge rather than mere economic incentives [7][8] - He categorizes knowledge into "epistemic knowledge" (theoretical understanding) and "techne" (practical skills), asserting that the fusion of these two types of knowledge is crucial for initiating the Industrial Revolution and modern growth [8][9] - Mokyr's research highlights the importance of political and cultural conditions in Europe that facilitated the creation, accumulation, and dissemination of useful knowledge, which was essential for modern economic growth [9][10] Group 2: Aghion and Howitt's Contributions - Aghion and Howitt's work is rooted in the concept of "creative destruction," which posits that economic growth is driven by the replacement of old technologies with new ones through research and development (R&D) [22][24] - Their model builds on Joseph Schumpeter's idea of "creative destruction," formalizing the process by which technological advancements lead to both increased economic potential and the obsolescence of existing technologies [23][24] - Aghion argues that competition has a dual effect on innovation, where moderate competition can stimulate innovation, but excessive competition may hinder it, leading to a nuanced understanding of how market dynamics influence growth [27][28] Group 3: Broader Implications - The research of Mokyr, Aghion, and Howitt collectively underscores that economic growth is not merely a function of increased wealth or output, but rather a reflection of a society's ability to accumulate knowledge, foster innovation, and rebuild after destruction [33] - Their findings are particularly relevant in the context of current global challenges, such as the rise of populism and protectionism, which threaten the mechanisms that support creative destruction and, consequently, economic growth [34]