{"id":3181,"date":"2025-10-13T19:11:12","date_gmt":"2025-10-13T19:11:12","guid":{"rendered":"https:\/\/andreasvonderheydt.com\/?p=3181"},"modified":"2025-10-13T19:11:12","modified_gmt":"2025-10-13T19:11:12","slug":"the-2025-nobel-prize-in-economics-on-innovation","status":"publish","type":"post","link":"https:\/\/andreasvonderheydt.com\/de\/the-2025-nobel-prize-in-economics-on-innovation\/","title":{"rendered":"The 2025 Nobel Prize in Economics – On Innovation"},"content":{"rendered":"

The 2025 Nobel Prize in Economics was awarded to Joel Mokyr, Philippe Aghion, and Peter Howitt for explaining innovation-driven economic growth.<\/p>\n

THEIR WORK<\/p>\n

Joel Mokyr showed that progress happens when knowledge connects knowledge. He distinguished between propositional knowledge (understanding why things work) and prescriptive knowledge (knowing how to make them work). His deeper message: innovation depends not just on ideas, but on societies that are open to change, tolerant of failure, and free from entrenched interests.<\/p>\n

Philippe Aghion & Peter Howitt built the first general-equilibrium model of creative destruction. A dynamic system where new technologies constantly replace old ones. Their work revealed that growth is a permanent race between innovation and obsolescence, where every breakthrough contains both creation and destruction. They showed how competition fuels progress, how monopolies slow it down, and how too little or too much R&D can both harm growth.<\/p>\n

WHAT INNOVATION REALLY MEANS<\/p>\n

\ud83d\udc49 Innovation isn’t about single inventions. It’s about each breakthrough building on the last, creating an endless cycle that transforms everything.
\n\ud83d\udc49 Creative destruction is the engine. New products and processes must kill old ones. Without this, we get stagnation disguised as stability.
\n\ud83d\udc49 Knowledge needs to flow everywhere. When breakthroughs stay regional or locked behind barriers, innovation dies.
\n\ud83d\udc49 Competition requires balance. Too few players or too many both kill innovation. The sweet spot shifts constantly.
\n\ud83d\udc49 Innovation creates losers, not just winners. Supporting displaced workers while letting obsolete jobs disappear is what sustains progress.
\n\ud83d\udc49 Society’s openness determines everything. Academic freedom, social mobility, and resistance to protectionism aren’t nice-to-haves. They’re survival requirements.<\/p>\n

TAKEAWAY<\/p>\n

For 200 years, each generation lived better than the last. That streak isn’t guaranteed, as economic growth is not the default state of humanity. Stagnation is. What keeps progress alive is courage: the courage to challenge the old, to reinvent, and to keep knowledge moving forward.<\/p>\n

Are we paying attention?<\/p>\n

Best,<\/p>\n

Andreas von der Heydt<\/a><\/p>","protected":false},"excerpt":{"rendered":"

The 2025 Nobel Prize in Economics was awarded to Joel Mokyr, Philippe Aghion, and Peter Howitt for explaining innovation-driven economic growth. THEIR WORK Joel Mokyr showed that progress happens when knowledge connects knowledge. He distinguished between propositional knowledge (understanding why things work) and prescriptive knowledge (knowing how to make them work). His deeper message: innovation […]<\/p>\n","protected":false},"author":1,"featured_media":3182,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[14],"tags":[131,127,130,129,132,25,114,126,128],"class_list":["post-3181","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-creativity","tag-econimics","tag-humanity","tag-innovation","tag-invention","tag-leadership","tag-management","tag-nobel-prize","tag-sweden"],"yoast_head":"\nThe 2025 Nobel Prize in Economics - On Innovation - Andreas Von Der Heydt<\/title>\n<meta name=\"description\" content=\"For 200 years, each generation lived better than the last. 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