BS EDIT: A Nobel for Innovation: Why Creative Cultures Drive Growth

By Business StandardPublished On Oct 14, 2025

Economics and the Times

The Nobel in Economic Sciences reflects prevailing economic trends. Recent awards focus on innovation, institutions, and the culture of growth

Meet the Laureates

Joel Mokyr, Philippe Aghion, and Peter Howitt study how societies adopt innovation and why creative cultures emerge and thrive

Creative Destruction

Aghion and Howitt formalised Schumpeter’s theory: growth comes from new technologies replacing old ones, driven by entrepreneurial innovation

Culture Matters

Mokyr shows that society’s attitude toward innovation determines whether new ideas succeed, influencing which economies prosper over time

Lessons for Policymakers

Last year’s award highlighted institutions. This year shows that innovation and a pro-change culture are crucial for sustained economic growth

India’s Growth Challenge

For India to prosper, investment in research must rise, reforms must be bolder, and society must embrace risk and challenge vested interests