Trio win Nobel economics prize for work on technology-driven growth | Nobel economics prize

Three experts on the power of technology to drive economic growth were awarded this year’s Nobel Prize in Economics.

Joel Mokyr of Northwestern University received half of the 11 million Swedish krona (£867,000) prize, along with two other academics: Philippe Aghion of the Collège de France, Insead business school and London School of Economics, and Peter Howitt of Brown University.

Announcing the award in an environment of fierce debate about rapid developments in artificial intelligence and its impact on society and living standards, the Royal Swedish Academy of Sciences said that the trio had pioneered the statement of “innovation-driven economic growth”.

The award comes as countries around the world struggle to recover from years of lackluster economic growth since the 2008 financial crisis, amid concerns about slowing productivity gains, slow progress on raising living standards and rising political tensions.

French economist Aghion warned that “dark clouds” were gathering in an environment of increasing trade barriers and openness fueled by Donald Trump’s trade wars. He also said innovation in green industries and curbing the rise of giant tech monopolies will be vital for stronger growth in the future.

“I don’t welcome the protectionist wave in the United States, and it’s not good for the growth and innovation of the world,” he said.

Speaking when accepting the award, he said artificial intelligence had “extraordinary growth potential” but called on governments to develop strict competition policies to manage the growth of new technology companies. “Some superstar firms can dominate and block potential entry of new innovators. So how can we make sure today’s innovators won’t stifle future entry and innovation?”

The award committee said technological advances had helped support sustainable economic growth over the past two centuries but warned that future gains could not be taken for granted.

Mokyr, a Dutch-born American-Israeli economic historian, won the award for his research identifying the preconditions for sustainable growth through technological progress. Canadian economists Aghion and Howitt shared the prize for their analysis that “creative destruction” is the key to boosting growth.

“We must support the underlying mechanisms of creative destruction so we don’t fall back into recession,” said John Hassler, chairman of the economic sciences prize committee.

Founded in the 1960s, several decades after the original Nobel prizes, this institution is technically known as: Swedish Riksbank Prize in economic sciences in memory of Alfred Nobel.