The laureates of the Nobel Prize in Economics 2025 have been announced: Joel Mokyr, Philippe Aghion, and Peter Howitt. They explained how technology drives the economy through "creative destruction" — when the new destroys the old 💥

Aghion and Howitt created a mathematical model back in 1992 showing that sustainable growth is possible ONLY when innovations constantly "kill" outdated technologies. Not just added, but actually replaced.


Joel Mokyr proved that technological breakthrough is not an accident. It requires a special environment: cultural prerequisites, institutions, and trust in the new. It was this environment in Europe after 1500 that allowed the Industrial Revolution to happen.


In different ways, the laureates show how creative destruction generates conflicts that must be resolved constructively. Otherwise, innovations will be blocked by companies and lobbies relying on outdated technologies.

If you want innovation, you need to ensure:
— Constant competition
— Supporting institutions
— An environment where new ideas can win

❗️ Otherwise, innovations will be blocked by those clinging to outdated technologies.

@dmitrii_ireshev_Agile_PMP #business