Nobel Laureates Highlight Urgent Need for Europe's Innovation Policy Reform
Nobel laureates emphasize Europe's need for policy reforms to boost innovation and address demographic challenges.
- • The 2025 Nobel Prize in Economics awarded to Mokyr, Aghion, and Howitt for research on innovation-driven economic growth.
- • Aghion warns Europe risks falling behind US and China without better innovation policies.
- • Howitt advocates AI regulation due to its impact on jobs and advancements.
- • Mokyr raises concerns about demographic challenges affecting economic sustainability.
- • French Minister highlights the importance of research investment for Europe's technological sovereignty.
Key details
The 2025 Nobel Prize in Economics, awarded to Joel Mokyr, Philippe Aghion, and Peter Howitt, underscores the critical role of innovation in economic growth and the challenges facing Europe in maintaining technological leadership. Mokyr was honored for identifying historical conditions that sustain long-term economic growth through technological progress, while Aghion and Howitt jointly received recognition for their theory of 'creative destruction', explaining how innovation disrupts markets and fosters growth.
Philippe Aghion, notably the fifth French laureate in this category, emphasized during his acceptance that Europe risks being left behind by the United States and China if it does not reform its innovation policies. He stressed the importance of openness as a growth driver, highlighting concerns that protectionist measures like increased U.S. tariffs pose obstacles for Europe. Aghion, who has advised French President Emmanuel Macron, also expressed unease over political shifts in France potentially affecting innovation encouragement.
Peter Howitt called for regulation of artificial intelligence to navigate its dual nature of driving progress while potentially displacing jobs. Mokyr additionally raised demographic issues, warning that Europe's aging population and declining birth rates threaten economic sustainability, possibly necessitating increased reliance on technological solutions.
Philippe Baptiste, France’s Minister of Higher Education, Research, and Space, hailed Aghion’s award as a call to invest more in research and innovation to secure Europe's technological and economic sovereignty. The Nobel comes with half of the one million euros prize going to Mokyr and the other half jointly to Aghion and Howitt, with the award ceremony scheduled for December 10. These laureates’ insights amplify the pressing need to address Europe's innovation policies to maintain competitive growth and adapt to demographic and technological challenges.