The BBVA Foundation recognizes Philippe Aghion and Peter Howitt for developing an economic growth theory based on the innovation that emerges from the process of creative destruction

March 24, 2020
Philippe Aghion
  • Their joint research starts from Joseph Schumpeter’s idea that productivity growth at the macroeconomic level stems from a process of creative destruction in which the continuous entry of new firms and technologies renders the incumbents obsolete
  • The two have bridged the gap between macro and microeconomic approaches to analyze how micro economic policies to incentivize entrepreneurship and competition affect productivity growth at the macroeconomic level
  • The neo-Schumpeterian growth model they devised in 1992 has proven a powerful tool to study a wide range of issues, like the linkages between innovation and job creation and destruction or its implications for wage inequality

Full announcement can be found at the BBVA's website.

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