(MENAFN- Live Mint) The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel for the year 2025 has been awarded to Joel Mokyr, Philippe Aghion, and Peter Howitt on Monday, 13 October 2025.

The official social media of the Nobel Prize posted that the Royal Swedish Academy of Sciences has decided to award the 2025 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel to Joel Mokyr, Philippe Aghion and Peter Howitt.

Also Read | Who are Nobel Prize winners Joel Mokyr, Philippe Aghion, and Peter Howitt?

However, people might wonder why the Nobel Economics Prize is called Sveriges Riksbank Prize.

Why is it called the Sveriges Riksbank Prize?

Sveriges Riksbank Prize is also known as the Nobel Economics Prize , as in 1968, Sweden's central bank, the Sveriges Riksbank, established the award in memory of the world-renowned innovator, Alfred Nobel.

The Sveriges Riksbank Prize is a distinction awarded based on a donation received by the Nobel Foundation in 1968 from Sveriges Riksbank on the occasion of the bank's 300th anniversary, according to the official website.

“The prize amount is the same as for the Nobel Prizes and is paid by the Riksbank,” according to the official Nobel Prize website.

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In 1969, Ragnar Frisch and Jan Tinbergen were the first to receive this award in economic sciences. Every year, the Royal Swedish Academy of Sciences awards the prize to the winning candidates based on the same principles as those for the Nobel Prizes, which have been awarded since 1901.

Contributions of Mokyr, Aghion and Howitt

Mint reported earlier that Joel Mokyr analysed historical sources to understand how sustained growth became the norm. He also demonstrated that for innovations to succeed in a self-sustaining cycle, it's not enough to know that something works; scientific explanations on the same are also necessary.

Also Read | Nobel Prize in Economics awarded to Joel Mokyr, Philippe Aghion and Peter Howitt

Before the Industrial Revolution, such explanations were often missing, hindering further development of new discoveries and inventions. He also emphasised the crucial role of an open society that is receptive to new ideas and change.

Philippe Aghion and Peter Howitt explored the mechanisms of sustained growth. In an article published in 1992, they developed a mathematical model of creative destruction, which is the process where the introduction of a new, superior product causes the decline of companies selling outdated products.

Innovation is considered creative because it introduces something new, but it is also destructive because companies with obsolete technology are driven out of the market, according to the news report.

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