This year’s Nobel Prize in Economics has been awarded to three experts who explore the influence of technology on economic growth.

Joel Mokyr from Northwestern University receives half of the prize, amounting to 11 million Swedish kronor (£867,000), while the remaining portion is shared between Philippe Aghion from the Collège de France, INSEAD Business School, and the London School of Economics, alongside Peter Howitt from Brown University.

The Royal Swedish Academy of Sciences announced this award during a period marked by rapid advancements in artificial intelligence and ongoing discussions about its societal implications, stating that the trio laid the groundwork for understanding “economic growth through innovation.”

This accolade comes at a time when nations worldwide are striving to rejuvenate economic growth, which has faced stagnation since the 2008 financial crisis, with rising concerns about sluggish productivity, slow improvements in living standards, and heightened political tensions.

Aghion has cautioned that “dark clouds” are forming amid President Donald Trump’s trade war, which heightens trade barriers. He emphasized that fostering innovation in green industries and curbing the rise of major tech monopolies are crucial for sustaining growth in the future.

“We cannot support the wave of protectionism in the United States, as it hinders global growth and innovation,” he noted.

While accepting the award, he pointed out that AI holds “tremendous growth potential” but urged governments to implement stringent competition policies to handle the growth of emerging tech firms. “A few leading companies may end up monopolizing the field, stifling new entrants and innovation. How can we ensure that today’s innovators do not hinder future advancements?”

The awards committee indicated that technological advancements have fueled continuous economic growth for the last two centuries, yet cautioned that further progress cannot be assumed.

Mokyr, a Dutch-born Israeli-American economic historian, was recognized for his research on the prerequisites for sustained growth driven by technological progress. Aghion and Howitt were honored for their examination of how “creative destruction” is pivotal for fostering growth.

“We must safeguard the core mechanisms of creative destruction to prevent sliding back into stagnation,” remarked John Hassler, chairman of the Economics Prize.

Established in the 1960s, the professional National Bank of Sweden awarded the Economics Prize in memory of Alfred Nobel.