Tuesday, Oct 28, 2025 09:15 [IST]
Last Update: Monday, Oct 27, 2025 16:08 [IST]
The Nobel Prize, the world’s most prestigious recognition of intellectual achievement, symbolizes humanity’s collective pursuit of knowledge and excellence. It stands as a reminder that wisdom and innovation are the true wealth of nations. Winning a Nobel Prize not only honours the laureates but also inspires every individual—students, teachers, researchers, policymakers, and planners—to dream bigger, think deeper, and work toward a better world. It reminds us that the journey of learning and discovery has a purpose beyond the classroom or the laboratory—it shapes societies, strengthens economies, and uplifts humanity.
The 2025 NobelPrize in economics science has been awarded to Philippe Aghion, Peter Howitt and Joel Mokyr for their groundbreaking work on innovation and economic growth. While each laureate focused on different aspects, their work shares a central theme: how knowledge, creativity, and innovation drive modern economies.
Joel Mokyr:
Joel Mokyr Combines economic history and technological progress to explain why economics stayed stagnant for centuries, but then grew rapidly over the last 200 years.
Mokyr highlighted that innovation can only sustain itself when three conditions are in place: a strong base of knowledge, institutions that support talent, and a culture open to new ideas also emphasising the importance of both know-how (practical skills) and know- why (Scientific understanding). Societies also need institutions that support talent and experimentation. His work links the success of theIndustrial Revolution to a culture that valued learning, curiosity, and sharing knowledge.
Philippe Aghion:
French economist Philippe Aghion , a professor at the London School of Economics is known for his research on innovation driven growth along with Peter Howitt , he created a model based on creative destruction, a concept introduced by Joseph Schumpeter, which explains how new technologies replace old ones and push economies forward.
According to Aghion, innovation is the main driver of growth. Competition motivates firms to invent, while policies supporting education, research, and open markets help strengthen this process. His research also points out that a balance is needed. Monopoly can slow innovation while excessive competition may reduce incentives for long-term investment.
Peter Howitt:
Canadian economist Peter Howitt worked with Aghion to give a structure to these ideas. He explains how, and why new ideas replace old ones showing that innovation follows predictable patterns.
Howitt’s model shows how innovation transforms industries , for instance, DVDs being replaced by streaming services, or old mobile phones evolving into smartphones.
He shows that competition drives companies to innovate and that long-term economic growth depends on societies accepting change. His research highlights the continuous cycle of renewal that keeps economies moving forward.
A lesson for the future
Together, Mokyr, Aghion, and Howitt have expanded our understanding of how ideas fuel economic growth. Their work emphasizes that progress depends not just on inventions, but also on systems, policies, and cultures that allow new knowledge to thrive.
The Nobel Prize awarded to them in 2025 is more than an academic honour—it is a message to the world. For students, it is a call to keep questioning and exploring new ideas.
For teachers and researchers, it is an encouragement to continue inspiring and guiding the next generation of thinkers. For economic planners and policymakers, it serves as a reminder that growth must be built on creativity, competition, and inclusiveness. For societies at large, it emphasizes that innovation and knowledge are the foundations of progress.
As Economics students, the 2025 Nobel prize is a clear message. Growth requires both innovation and openness, A balance between keeping what works and embracing what is new. It shows that change can be disruptive, but it is also essential for continuous improvement and advancement by fostering curiosity, supporting research and valuing new ideas, societies can ensure sustained economic progress for the future.
Ms. Eden Lepcha, Ms Geetanjali Rai & Ms Sange Droma Sarai, BA Economics are Graduandsof SRM University Sikkimand Dr. Praveen Rizal is Professor of Economics&Teacher Coordinator)
