Northwestern University is celebrating a monumental achievement as Professor Joel Mokyr has been awarded the 2025 Nobel Prize in Economic Sciences. The esteemed economist and historian, a distinguished figure at Northwestern for over five decades, shares the prestigious award with Philippe Aghion and Peter Howitt for their seminal work explaining innovation-driven economic growth. The announcement on Monday, October 13, 2025, marked a significant moment for the university and the global academic community, with Northwestern hosting a press conference the following day to honor Professor Mokyr.
A Landmark Achievement Recognized
The Royal Swedish Academy of Sciences bestowed the 2025 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel upon Mokyr, Aghion, and Howitt for their groundbreaking research that reshapes our understanding of how technological progress fuels sustained economic growth. This pivotal news highlights how, for the first time in history, the world has witnessed consistent economic expansion over the past two centuries, lifting billions out of poverty and establishing the foundation for current global prosperity. Professor Mokyr, the Robert H. Strotz Professor of Arts and Sciences and professor of economics and history at Northwestern, received half of the prize for his contributions.
Mokyr’s Theory: The Pillars of Progress
Professor Mokyr’s Nobel-winning research centers on identifying the fundamental prerequisites for sustained economic growth through technological advancement. Drawing extensively from historical sources, particularly the Industrial Revolution, Mokyr demonstrated that lasting growth is not merely about knowing that a technology works, but crucially, understanding why it works. His work emphasizes three key requisites: the generation of useful knowledge, the development of mechanical competence, and the establishment of institutions that foster technological progress. He argues that the self-generating process of innovation, which enables scientific breakthroughs to enhance practical applications and vice versa, was a critical factor. Furthermore, Mokyr underscored the vital role of societal openness to new ideas and change, noting that resistance can stifle progress.
Northwestern University Honors Its Nobel Laureate
Northwestern University proudly celebrated Professor Mokyr’s extraordinary achievement. President Henry S. Bienen lauded Mokyr as an “invaluable member” of the university’s leading economics and influential history departments, whose work has profoundly impacted the understanding of both fields by integrating culture into economic growth analysis. Dean Adrian Randolph of the Weinberg College of Arts and Sciences echoed these sentiments, commending Mokyr’s role in fostering interdisciplinary study and his mentorship of students. A press conference held on October 14, 2025, saw Professor Mokyr reflect on his five-decade tenure at Northwestern, the importance of interdisciplinary approaches, and humanity’s most pressing future challenges. The university community expressed immense pride in his accomplishments, recognizing him as a “towering figure in economic history”.
Innovation and ‘Creative Destruction’ Drive Prosperity
The other half of the prize was jointly awarded to Philippe Aghion of the Collège de France and the London School of Economics, and Peter Howitt of Brown University. Aghion and Howitt are recognized for developing a mathematical model for a theory of sustained growth through “creative destruction”—the process by which new technologies and products replace older ones. Their combined work with Mokyr provides a comprehensive framework explaining how innovation is the engine of economic growth, leading to improved living standards, health, and quality of life globally. The Nobel Committee stressed that sustained growth cannot be taken for granted and requires mechanisms that support this continuous evolution.
A Career of Visionary Scholarship
Born in the Netherlands and raised in Israel, Joel Mokyr has built a remarkable career bridging economic history and the evolution of scientific thought. His academic journey includes degrees from the Hebrew University of Jerusalem and Yale University, where he also briefly served as an acting instructor. He has been a professor at Northwestern since 1974 and also holds affiliations with Tel Aviv University. Mokyr’s prolific work, including books like “A Culture of Growth: Origins of the Modern Economy,” has earned him numerous accolades prior to this Nobel Prize, such as the Heineken Award for History and the International Balzan Prize. While expressing optimism about future economic progress, Mokyr also identifies critical challenges for humanity, including climate change and demographic shifts, urging continued investment in innovation to address them. His insights continue to be a featured topic in academic discussions, often trending in economic discourse.
Professor Mokyr’s Nobel Prize is not only a testament to his individual brilliance but also a recognition of the profound impact that rigorous historical and interdisciplinary research can have on understanding the very foundations of modern economic prosperity. His work offers valuable lessons for policymakers and scholars alike, underscoring the enduring power of knowledge, innovation, and openness in shaping a better future.
