Decoding the 2025 Nobel in Economics: How new ideas crush the old and fuel growth

In a paper in 1992, Philippe Aghion and Peter Howitt explained how economic growth is propelled by a cycle of innovation, in which outdated technologies and firms are replaced by newer technology. This cycle of “creative destruction” leads to sustained economic growth, as new technologies and firms outcompete and replace the old, driving productivity and efficiency.  Joel Mokyr’s historical analysis shows that technological progress is not merely a result of scientific discovery, but also depends on the cultural and institutional contexts that support the dissemination and application of knowledge.  Together, their work underscores the importance of innovation in driving economic prosperity and the need for supportive institutions and policies to sustain this growth. So, what can we understand from these works, given that are entering a new era of technological innovation? Guest: Partha Chatterjee, Dean of Academics, School of Humanities and Social Sciences. Professor, Department of Economics, Shiv Nadar University.  Host: Nivedita V Edited by Jude Francis Weston Learn more about your ad choices. Visit megaphone.fm/adchoices