Philippe Aghion

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French economist Philippe Aghion, cowinner of the 2025 Nobel Prize for Economics.

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Philippe Aghion (born August 17, 1956, Paris, France) is a French economist whose research on innovation, competition, and economic growth has helped redefine how economists understand the role of technological change in long-term prosperity. In 2025 he shared half of the Nobel Prize for Economics (the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel) with Peter Howitt “for the theory of sustained growth through creative destruction,” which describes how new technologies and firms continually replace older ones, sustaining economic development. The other half of the prize went to the economic historian Joel Mokyr for complementary work on innovation and the Industrial Revolution.

Aghion was educated in France and the United States. He studied mathematics and economics before turning to the theoretical foundations of growth and innovation. He received a Ph.D. in economics from Harvard University in 1987. His graduate work reflected a broader aim that would define his career: linking formal economic theory with the practical forces that shape modern economies.

Aghion began his academic career at the Massachusetts Institute of Technology and subsequently held appointments at Oxford University and University College London before joining Harvard University as a professor of economics in 2000. He was a member of the faculty there until 2015, when he accepted the Centennial Professorship of economics at the London School of Economics (LSE). He also became a professor of economics at INSEAD (Institut européen d’administration des affaires [European Institute of Business Administration]), as the Kurt Björklund Chaired Professor in Innovation and Growth, and the academic director of INSEAD’s Economics of Innovation Lab. In addition, he holds the chair of economics at the Collège de France and is a visiting professor at LSE.

With Howitt, Aghion developed the Schumpeterian model of endogenous growth, first formulated in their 1992 paper “A Model of Growth Through Creative Destruction.” Their work demonstrated mathematically how new companies and technologies replace older ones, generating a continuous cycle of innovation, obsolescence, and renewal. The framework linked the concept of creative destruction to measurable patterns of economic growth and influenced later research on how innovation evolves within an economy.

Building on that foundation, Aghion investigated how institutions, competition policy, education, and financial systems affect innovation incentives. His research has identified the “inverted-U” relationship between competition and innovation, showing that moderate competitive pressure maximizes creative effort. He has also examined how macroeconomic policy and regulation influence innovation and the behavior of companies.

In the 2010s and 2020s Aghion’s work expanded to the study of environmentally sustainable development, often described as “green growth,” which examines how economies can expand while reducing emissions through technological innovation. At INSEAD and LSE he extended his research to explore how climate policy and technological innovation can support both environmental goals and economic growth. His book The Power of Creative Destruction (2021), coauthored with Céline Antonin and Simon Bunel, translated these theories for general audiences and linked them to ongoing debates about inequality and automation.

Before receiving the Nobel Prize, Aghion was widely honored for his academic contributions. He received the Yrjö Jahnsson Award in 2001 (as Europe’s leading economist under 45), the John von Neumann Award in 2009, and the BBVA Foundation Frontiers of Knowledge Award in 2020 for developing growth theory grounded in innovation and the process of creative destruction. He was elected a fellow of the American Academy of Arts and Sciences, the Econometric Society, and the British Academy.

In 2025 Aghion and Howitt shared half of the Nobel Prize for Economics for their theoretical and empirical advances in understanding innovation-driven growth. The Royal Swedish Academy of Sciences praised their research for demonstrating how creative destruction can produce broad-based prosperity even as it transforms industrial structures.

Speaking after the Nobel announcement, Aghion said he was “speechless” at the news and planned to invest his share of the prize money in further research. Commenting on global economic conditions, he warned that rising protectionism and barriers to trade threatened innovation, noting that “openness is a driver of growth.” He also argued that new technologies such as artificial intelligence have significant potential for growth but require policies that encourage innovation while preventing market dominance. Aghion has also served as cochair of France’s Artificial Intelligence Commission (2023–24), advising French Pres. Emmanuel Macron on innovation and technology policy.

Aghion’s work has become central to the field of growth economics. His creative destruction framework has influenced policy on industrial competition, education, and climate innovation in Europe and internationally. By connecting economic theory with practical policy analysis, he has helped shift macroeconomic thinking toward the conditions that sustain innovation and inclusive prosperity. His continuing research at INSEAD, the Collège de France, and LSE explores how economic systems can balance creative change with social stability.