STOCKHOLM: Economists Joel Mokyr, Philippe Aghion, and Peter Howitt have been awarded the Nobel Memorial Prize in Economic Sciences for their groundbreaking research on innovation-driven economic growth and the principle of creative destruction.

The Nobel Committee credited the trio for deepening the understanding of how innovation fuels long-term growth by replacing outdated technologies and industries with new ones — a process first described by Joseph Schumpeter in 1942.

Mokyr, 79, a Dutch-born economic historian from Northwestern University, analyzed historical data to trace the evolution of technological progress.

Aghion, 69, of the Collège de France and London School of Economics, and Howitt, 79, from Brown University, used mathematical models to explain the mechanisms of continuous innovation.

Aghion said he was “shocked” by the news and vowed to invest the prize money into his research lab. Asked about global trade tensions, he warned that protectionism in the U.S. could harm global innovation and growth.

The committee noted that Mokyr’s work showed the importance of understanding why innovations succeed, while Aghion and Howitt’s research built mathematical frameworks to explain sustained economic expansion.

Aghion also played a key role in shaping French President Emmanuel Macron’s 2017 economic agenda and co-chaired the Artificial Intelligence Commission, which proposed 25 strategies in 2024 to boost France’s AI leadership.

“The laureates’ work reminds us that growth must not be taken for granted — we must preserve the forces of creative destruction,” said John Hassler, chair of the Nobel Committee.

The 11 million Swedish kronor (about $1.2 million) prize will be split — half going to Mokyr, and the other half shared by Aghion and Howitt. Winners also receive an 18-carat gold medal and a diploma.