Economic Nobel is awarded for studying the role of innovation in increasing the wealth

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The Swedish Royal Academy of Sciences has decided to mark the Nobel Prize in the Alfred Nobel Economic Sciences, founded by the Swedish National Bank, in 2025, Joel Mokir of the American Northwestern University, Philip Agyon from French Cholona Franc. Economic progress that is activated by innovations. ” The official site informs about it Nobel Committee.

– Laureate works prove that economic exaltation is not automatic. It is necessary to maintain the processes of creative destruction in order to avoid returning to stagnation, – said the chairman of the Committee on Economic Sciences named after Alfred Nobel John Hassler.

The winners of 2025 explain how the innovations contribute to further development. Technologies evolve and influence each of us: new products and production methods displace the old ones in a continuous cycle. This is the essence of stable economic progress, which improves the standard of living, health and well -being of people around the world. However, this was not always the case. Much of human history was marked by stagnation. Despite some significant discoveries that from time to time improved the conditions of existence and profits, growth sooner or later has always slowed.

The wet has used historical sources to study the causes that have become a new reality. He showed that for the continuity of innovations in the self -replicated process, it is necessary not only to know that something works, but also to have a scientific justification why. Such justification was often not enough before the industrial revolution, which complicated the development of new knowledge and inventions. He also emphasized the importance of society’s openness to new ideas and readiness for change.

Agion and Holit also studied the mechanisms of stable progress. In 1992, they created a mathematical model of the concept of creative destruction: when a new, better product, companies that sell outdated products get into the market, suffer losses. The innovation is creative, but at the same time destructive, since the technology of the company, which becomes outdated, loses its competitive advantage.

The Economic Prize completes the Nobel Week, which usually happens in early October. The economy is a relatively young science, and in the will of Alfred Nobel there are no mention of its celebration. The Economy Prize appeared only after the Central Bank of Sweden donated a considerable amount in honor of its 300th anniversary in 1968.

Officially, this award is not a Nobel Prize, but it is awarded during the same ceremony and the same academic commission. The award contains a reward of about $ 1 million and a gold medal of unique design. The winner is chosen by the Swedish Royal Academy of Sciences, following the same rules as in determining the winners in other scientific fields.

• On October 14, 2024, the Nobel Committee announced that the Nobel Prize in Economics was awarded for research on the formation of socio-political institutions and their impact on the well-being of different countries. The best -selling authors were awarded to “why nation is declining” by the Economists Demoglu (Turkey, the United States) and James Robinson (USA), as well as Simon Johnson (Britain).
• On October 9, 2023, the Swedish Royal Academy of Sciences stated that the Nobel Prize in Economics in 2023 was received by 77-year-old professor at Harvard University Claudia Goldin “for deepening our understanding of the results of the women’s labor market”.

Source: kp.ua