Creative Destruction Theorists Win Nobel Prize for Economics

The 2025 Nobel Prize in Economics has been awarded to three researchers for their groundbreaking work on the concept of "creative destruction." The laureates are Joseph Schumpeter, an Austrian-American economist, Robert Solow, an American economist, and Carlota Pérez, a Venezuelan-British economist. Their research has provided a deeper understanding of how innovation and technological change drive economic growth, but also lead to the destruction of existing industries and jobs. Schumpeter's seminal work on the "gales of creative destruction" highlighted how the introduction of new products and processes can disrupt and eventually replace outdated ones, leading to cycles of economic progress. Solow's growth model demonstrated how technological advancement is a key driver of long-term economic growth, while Pérez's work on "techno-economic paradigm shifts" analyzed the broader societal and institutional changes that accompany major technological revolutions. The award recognizes the importance of their contributions to economic theory and their influence on policymakers in navigating the complex dynamics of innovation and economic transformation.