Mysteries of Innovation Policy: 2025 Nobel Prizes for Economics

The objective of the present article is to explore the accomplishments of the 2025 Nobel Prize laureates in the field of Economic Research. Findings. The research analyses the concept of the Nobel Prize winners, according to which scientific and technological progress represents creative destruction generating new realities and demolishing the old ones. It also explores the divergence in development paths between European countries and the rest of the world. Particular attention is focused on the winners’ research on the causes and mechanisms of the first industrial revolution and long-term statistical indicators of time series ranging two to six centuries. The econometric portion of abovementioned achievements is presented in the article using the Aghion-Howitt model. In conclusion, the author pays the tribute to the significance of the laureates’ work for the future development of the global economy and emphasises a significant impact of their ideas on the future in two aspects: the integration of artificial intelligence into scientific and technological progress and the formation of the so-called “knowledge economy”.

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