Half the prize received the Economic Historian Joel Mokyr from the American University of Northwestern in the city of Evanston, the Federal State of Illinois, “to determine the assumptions for sustainable growth through technological progress.”
The second half will share the Philippe Aghion economist in Paris, and the London School of Economy and Political Science, and Peter Howitt from the American University of Rhode Iceland, “for sustainable growth theory through creative destruction.”
This year’s laureates in the field of economic sciences explain how innovations encourage progress, ie how new technology can initiate sustainable growth.
Today, technology is progressing quickly, which also means rapid production and production methods and the creation of a basis for sustainable economic growth, but also for better living standards, health and quality of people around the world, standing in a statement.
Stagnation, however, was a rule through the history, and the growth was always stabilized after important discoveries. On the basis of historical sources, Joel Mokyr showed the process in which innovations give birth to new inventions, offering a scientific explanation. “It is also important that the company is ready for new ideas and enable change,” Mokyr determined.
Both Philippe Aghion and Peter Howitt studied sustainable growth mechanisms and in the 1992 article. Created a mathematical model “Creative destruction”. New and better products are extremely out of the market from the old manufacturers, which means that innovation is creative because it brings something new, but also destructive because it expels from the game company with obsolete technology.
This year’s laureats show how creative destruction creates conflicts that need to be “constructively managed.” Otherwise, innovation will be blocked by established companies and stakeholders that threatens the danger of being brought into an unfavorable position.
“The work of the laureate shows that economic growth cannot be taken for granted. We must support the mechanisms that are basically creative destruction so that we should not fall into stagnation,” says the President of the Committee for the Economic Sciences Committee John Hassler.
(Vijesti.ba / Hina)
