Nobel Prize Conversations First reactions | Philippe Aghion, prize in economic sciences 2025 | Telephone interview
Oct 13, 2025
Philippe Aghion shares his surprise at winning the Nobel Prize in economic sciences during a chaotic phone call. He discusses the origins of his collaboration with Peter Howitt and their impactful 'creative destruction' model of economic growth. The conversation dives into the significance of innovation and entrepreneurial activity while stressing the need for inclusive growth. Aghion advocates for policies that enhance flexibility in the labor market and reduce barriers to entry, aiming for a fairer distribution of economic benefits.
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Surprising Phone Calls At Announcement
- Philippe Aghion recounts the immediate calls and confusion when the Academy tried to reach Peter Howitt after the announcement.
- He describes calling Peter and the humorous phone problems as they learned the news.
Collaboration That Built A New Paradigm
- Aghion describes meeting Peter Howitt in fall 1987 at MIT and building their model then.
- He recalls years of collaboration including books and papers on growth and competition.
Creative Destruction’s Central Contradiction
- Long-run growth comes from cumulative innovation driven by entrepreneurs aiming for innovation rents.
- Creative destruction creates a core contradiction as incumbents may block subsequent innovations.