Nobel Prize in Economics awarded to former Nuffield Fellow
Philippe Aghion (Official Fellow 1992-6) has been named a winner of the 2025 Nobel Prize in Economic Science for his work on innovation-driven economic growth.
Philippe, who is currently Professor of Economics at LSE and at the College de France and INSEAD, worked with fellow Nobel winner Peter Howitt (Brown University) on how ‘creative destruction’ in economic markets creates sustained growth. Such sustained economic growth has, over the last two centuries, ‘lifted vast numbers of people out of poverty and laid the foundation of our prosperity’.
Philippe and Peter published a paper in 1992, ‘A Model of Growth Through Creative Destruction’ (Econometrica 60(2): 323-351; doi:10.2307/2951599), in which they constructed a mathematical model for creative destruction: when a new and better product enters the market, causing older products to become defunct and companies selling them to be no longer competitive.
Philippe and Peter share this year’s prize with Joel Mokyr (Northwestern University), who used historical sources to ‘identify the prerequisites for sustained growth through technological progress’.
On the announcement of the prize, Warden Julia Black commented:
“Along with the whole Nuffield community, I am thrilled that Philippe Aghion’s pioneering work on creative destruction has been recognised by the award of the Nobel Prize. His work demonstrates how innovations propel economic growth, but also notes that the process is both creative and destructive, creating conflicts which need to be carefully managed if growth is to be sustained and its benefits widely shared.
"His work has had a profound impact on economic thought and public policy, and we send our warmest congratulations on this well-deserved award.”
Professorial Fellow Paul Klemperer added:
“Philippe was one of the liveliest members of the College, always a fountain of ideas. He could easily have been awarded the prize many years ago. We are delighted he has won it now.”
Philippe joins three other Nuffield Nobel Laureates: current Honorary Fellow Amartya Sen (Professorial Fellow 1977-80; Associate Member 1979-85); Sir James Mirrlees (Professorial Fellow 1968-95; Emeritus Fellow 1994-2018), and John Hicks (Honorary Fellow 1958-89).
The prize announcement was made on the Nobel Prize website on 13 October 2025.
Photograph (top right) by Jane Bown from the Nuffield College Archive.