On October 13, the Royal Swedish Academy of Sciences announced that Philippe M. Aghion, a former economics professor at Harvard, has been awarded the Nobel Prize in Economics for his contributions to understanding economic growth and innovation. His work centers on the theory of “creative destruction,” a framework describing how new technologies displace outdated ones, driving long-term economic advancement. n nAghion shares half of the prize with Peter W. Howitt of Brown University, with whom he co-authored a seminal 1992 paper that established the first formal mathematical model of this process. The concept itself was originally introduced by Joseph A. Schumpeter, a Harvard-affiliated economist, though Aghion and Howitt expanded it into a rigorous analytical structure. n nThe other half of the award goes to Joel Mokyr from Northwestern University, recognized for identifying the conditions necessary for sustained technological progress. According to the official announcement, Mokyr’s insights helped clarify how knowledge accumulation and institutional frameworks enable continuous innovation. n nThe total prize amount is 11 million Swedish kronor, approximately $1.1 million, distributed such that Mokyr receives 50 percent, while Aghion and Howitt each receive 25 percent. n nIn a conversation with the Associated Press shortly after the announcement, Aghion expressed disbelief at the honor, calling it “a total surprise.” He remarked that the moment felt surreal, as he had not anticipated receiving the award this year. n nColleagues and former peers at Harvard have publicly commended the recognition. Oliver S.D. Hart, a Nobel laureate in economics from 2016, described Aghion’s achievements as deeply deserving and praised his relentless drive and intellectual output. Hart added that he expects Aghion to remain a leading figure in economic research for years ahead. n nDavid I. Laibson ’88, also a professor in Harvard’s economics department, recalled his time working alongside Aghion, describing their academic exchanges as intellectually invigorating. He emphasized Aghion’s abundance of ideas and infectious enthusiasm for the discipline. Laibson noted that the 1992 paper cited by the Academy gained widespread academic attention even before formal publication, becoming part of core curricula in top economics programs. n nAghion’s research demonstrates that economic development relies on continuous innovation, where outdated systems are phased out by superior alternatives. He emphasized that this process generates both beneficial spillovers for future innovators and adverse impacts on displaced competitors—key dynamics in shaping competitive markets. n nAfter earning a mathematics bachelor’s degree from Université Paris I Panthéon-Sorbonne and a doctorate in economics from Harvard, Aghion taught briefly at MIT, where he began collaborating with Howitt. In 1990, he moved to London to serve as deputy chief economist at the European Bank for Reconstruction and Development before returning to academia. He rejoined Harvard in 2000 and later held a position at the London School of Economics starting in 2015. n nDespite decades of scholarly work and numerous publications, Aghion maintains that his primary motivation stems from intellectual curiosity rather than accolades. “You don’t pursue research for awards,” he said. “You follow questions, develop frameworks, and advance understanding—those are the real drivers.”n— news from The Harvard Crimson
— News Original —nThe Former Harvard Professor Who Won This Year’s Nobel Prize in EconomicsnnFormer Harvard Economics professor Philippe M. Aghion won the Nobel Prize in Economics for his research on economic growth and innovation, the Royal Swedish Academy of Sciences announced on Oct. 13. n nAghion won the prize for his research on “creative destruction,” an economic concept where new innovations render old innovations obsolete and replace them. n nHe shared half of the Nobel Prize with Peter W. Howitt, a Brown University economist and Aghion’s co-author on a prominent 1992 paper that provided the first mathematical basis for creative destruction. n nThe concept was first popularized by Joseph A. Schumpeter, a Harvard economist and former Austrian finance minister who died in 1950. In a Monday interview, Aghion said that his research was meant to “build up a new growth model that would embody Schumpeter’s notion of creative destruction.” n nThe other half of the Nobel Prize was awarded to Joel Mokyr, an economist from Northwestern University who “ u200b u200bidentified the prerequisites for sustained growth through technological progress,” according to a press release announcing the award. n nThe prize comes with a lump sum of 11 million Swedish kroner, or around $1.1 million, which will be split between the three laureates. Mokyr will get half, while Aghion and Howitt will each receive a quarter of the money. n nIn an interview with the Associated Press just hours after he won the Nobel Prize, Aghion described the award as “a total surprise.” n n“It looked like everything was becoming blurred, totally unreal for me because I never thought for a second that I would get it this year,” he said. n nSeveral of Aghion’s former colleagues at Harvard praised the Academy’s decision to award him the prize in economics. n nHarvard Economics professor Oliver S.D. Hart, who received the Nobel Prize in 2016, wrote in an email that he was “absolutely delighted” with Aghion’s win. n n“Philippe has enormous energy and enthusiasm and has been hugely productive,” Hart wrote. “I have no doubt that he will continue to do important and influential work for years to come.” n nHarvard Economics professor David I. Laibson ’88 said in a Monday interview that, when Aghion was still a professor at Harvard, “every interaction was an exciting intellectual journey with Philippe.” n n“He is full of ideas,” Laibson added. “He is full of energy. His enthusiasm for economics is overflowing.” n nLaibson also said that Aghion’s 1992 paper, which the Academy specifically cited when announcing his prize, was so influential “that it was being taught in the leading courses of the field years before it actually reached the stage of publication.” n nAghion’s paper found that economies grow through consistent innovation driven by old technologies becoming obsolete. He wrote that for creative destruction to succeed, it must involve “both positive externality on your successors” as well as “negative externality on those that you drive out.” n nAfter graduating from the Université Paris I Panthéon-Sorbonne with a bachelor’s degree in mathematics and obtaining a doctorate in economics from Harvard, Aghion briefly taught at MIT, where he met Howitt. He left in 1990 for a stint as deputy chief economist at the European Bank for Reconstruction and Development in London, before eventually returning to academia full-time as a professor at University College London. n nAghion returned to Cambridge in 2000 as an economics professor at Harvard, and left for an appointment at the London School of Economics in 2015. n nEven after decades in the academy and dozens of publications, Aghion said his main motivation as an economist remains his simple passion for the field. n n“You don’t do research for the Nobel Prize,” he said. “You do research because you follow your curiosity, because you push an agenda, because you push a line of research.”