- The 2025 Economics Nobel prize was awarded to Joel Mokyr, Philippe Aghion, and Peter Howitt for their groundbreaking work on innovation and economic growth.
- The research explored why sustained economic growth emerged only in the last two centuries despite technological progress throughout history.
- It argued that before the Industrial Revolution, technological knowledge was largely “prescriptive” i.e. people knew how to make things work but not why they worked.
- The Scientific Revolution during the 16th–17th centuries transformed this into “propositional” knowledge i.e. linking empirical understanding with scientific reasoning.
- This fusion of science and technology created the foundation for “useful knowledge,” enabling systematic innovation. Read More
Nobel Prize in Economics 2025
Context
Historical Roots of Modern Economic Growth