The Nobel Prize and the Engine of Progress: Why Innovation is Driven by Culture, Not Just Capital
The Royal Swedish Academy of Sciences delivered a powerful message this year by awarding the 2025 Nobel Prize in Economic Sciences to three scholars who fundamentally proved that sustained economic progress is not an accident—it is a cultural choice. Economists Joel Mokyr, Philippe Aghion, and Peter Howitt were jointly honored "for having explained innovation-driven economic growth." Their work, which bridges economic history and advanced mathematical modelling, explains the most crucial transformation in human history: the shift from centuries of stagnation to two centuries of continuous, transformative prosperity. More than just theories of capital accumulation, their research underscores that the true roots of modern wealth lie in two concepts: the cultural prerequisites for innovation and the relentless, often painful, process of creative destruction ...