Peter Wilkinson Howitt

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Canadian economist Peter Howitt, cowinner of the 2025 Nobel Prize for Economics.

© 2013 Ashley McCabe/Brown University

Peter Wilkinson Howitt (born May 31, 1946, Canada) is a Canadian economist known for his theoretical work on innovation, technological change, and long-term economic growth. In 2025 he shared half of the Nobel Prize for Economics with Philippe Aghion “for the theory of sustained growth through creative destruction,” a framework describing how new technologies and companies replace older ones, driving sustained development. The other half of the prize was awarded to the economic historian Joel Mokyr for complementary work on the historical roots of innovation and industrialization.

Howitt received a bachelor’s degree from McGill University in Montreal in 1968 and a master’s in economics from the University of Western Ontario the following year. His doctoral studies in macroeconomic theory provided the foundation for his later research on innovation and economic growth.

While completing a Ph.D., Howitt joined the faculty of the University of Western Ontario, where he taught from 1972 to 1996. He then served on the economics faculty at Ohio State University from 1996 to 2000 before joining Brown University. At Brown he was the Charles Pitts Robinson and John Palmer Barstow Professor of Economics and later became a professor emeritus. He is affiliated with the National Bureau of Economic Research and the American Economic Association.

Along with Philippe Aghion, Howitt developed the Schumpeterian model of how innovation evolves within an economy, first published in their 1992 Econometrica article, “A Model of Growth Through Creative Destruction.” The framework linked technological progress to measurable patterns of productivity growth and influenced subsequent research on the concept, known as endogenous growth, or economic growth driven by forces within the economy itself. Their work formalized Joseph Schumpeter’s idea of creative destruction, the process by which new companies and technologies replace older ones as a central mechanism of innovation and economic expansion.

The model that Howitt helped develop has since been extended to study macroeconomic fluctuations, unemployment, and policy design for innovation-based economies. His own research explored how factors such as education, finance, and competition influence a nation’s capacity to generate and sustain technological progress.

In 2025 Howitt and Aghion shared half of the Nobel Prize for Economics (formally the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel), awarded for their development of the theory of sustained growth through creative destruction. The Royal Swedish Academy of Sciences praised their work for showing how innovation and the continual replacement of older companies by new ones can drive broad-based prosperity even as technological change transforms existing industries. Before receiving the Nobel Prize, Howitt had been elected a fellow of the Royal Society of Canada and recognized internationally for his contributions to macroeconomic and growth theory.

At the time of the award, Howitt was a professor emeritus at Brown University. Upon learning of the prize, he said that “this is all really quite a shock to me.” He expressed gratitude to his colleagues and coauthor Philippe Aghion, noting that their partnership had spanned decades and reflected a shared interest in understanding how innovation shapes economic growth.

Howitt’s research helped transform the study of economic growth by placing innovation at the center of macroeconomic analysis. The Schumpeterian framework he developed with Aghion remains a foundation for modern growth theory and a tool for analyzing policies that promote research and technological change. His approach has continued to inform economic policy debates and theoretical research on long-term prosperity.