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

• 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.