THE EDUCATOR'S PEN

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 CBS LINE

Volume 3(11)

Innovation and Creative Destruction: Nobel Laureates Illuminate Paths to Sustained Economic Growth

This year, the Nobel Prize in Economic Sciences was conferred upon three extraordinary individuals – Joel Mokyr, Philippe Aghion, and Peter Howitt – for their seminal research linking innovation, disruption, and enduring prosperity. Their reflections demonstrate that improvement is far from a simple line but a quest enriched with creative concepts and the courage to initiate change.

Joel Mokyr’s work illustrates that the real engine of economic growth is not simply innovation, but a society’s receptiveness to novel paradigms of thought. Prior to the Industrial Revolution, the majority of innovations remained dormant, unused by the masses, due to the cultural and institutional environment being unproductive. It was only when individuals began to nurture knowledge and encourage practical experimentation that innovations could thrive and transform lives.

Meanwhile, Aghion and Howitt gave us a powerful way to understand this process, refining the theory of ‘creative destruction’. Their research makes it clear how new products and technologies replace the obsolete, compelling businesses and labourers to adapt or risk being obselete. This cycle, while disconcerting at times, is also the source of enhanced living standards and economic growth.

The insight from these Nobel laureates is profound yet practical. The certainty of economic advancement is not guaranteed; it relies on our willingness to embrace innovation, gain insights, and assist those unsettled by change. In honoring Mokyr, Aghion, and Howitt, the Nobel committee brings attention to the persistent relevance of inventive ideas—and the intricate human experiences that are intertwined with the process of economic growth.

Dr.Vinil K V
HOD and Assistant Professor
Department of Economics
Sacred Hearts College,Thevara

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