Innovation’s power to transform economies and improve lives is at the center of this year’s Nobel Prize in Economics, awarded to Western University alumnus, former faculty member and honorary professor Peter Howitt. His groundbreaking theory of creative destruction reveals how the continual cycle of new ideas and technologies replacing the old drives long-term economic growth – shaping the way nations build prosperity, resilience and progress.
Sharing the honour with Joel Mokyr and Philippe Aghion, Howitt’s research has transformed how economists and policymakers understand the connection between innovation, productivity, and prosperity. By formalizing how technological change and entrepreneurial renewal fuel growth, their work helps explain why economic stagnation, rather than growth, has defined much of human history – and how continuous innovation can chart a different path forward.
By deepening understanding of the forces that power growth and productivity, his models continue to guide policymakers in creating conditions where innovation and entrepreneurship thrive. His ideas inform how governments design strategies to strengthen competitiveness and build sustainable, forward-looking economies.
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