Joel Mokyr, an American-Israeli economist, was awarded half of the Nobel Prize in Economics for his work in explaining how sustained economic growth became the norm (The Royal Swedish Academy of Sciences, 2025). According to the Nobel Committee, Mokyr's research highlighted the significance of scientific knowledge in driving innovation and economic growth.
Before the Industrial Revolution, the lack of understanding of scientific principles made it challenging to build upon new discoveries, hindering the development of a self-generating process of innovation. Mokyr's work, as presented in his book "A Culture of Growth: The Origins of the Modern Economy," emphasizes the importance of an open society that welcomes new ideas and allows for change (Mokyr, 2016). His research has shown that for innovations to succeed, people need a scientific explanation for why breakthroughs work.
This concept is crucial in understanding the transition from an agrarian economy to an industrial one. As an economist and historian, Mokyr's interdisciplinary approach has provided valuable insights into the origins of modern economic growth.
The dynamics of economic growth and innovation are intricately linked, with technological advancements serving as a primary driver of productivity and expansion. Research has shown that investments in research and development, as well as the development of human capital, are crucial in fostering an environment conducive to innovation (Romer, 1990). The endogenous growth theory, developed by economists such as Paul Romer and Robert Lucas, posits that economic growth is driven by internal factors, including technological progress and human capital accumulation, rather than external factors such as natural resources (Romer, 1990; Lucas, 1988). The relationship between economic growth and innovation is also influenced by institutional factors, including the presence of intellectual property rights, regulatory frameworks, and government policies (Aghion & Howitt, 2009). A favorable business environment, characterized by low barriers to entry and high levels of competition, can encourage entrepreneurship and innovation, leading to increased economic growth (Schumpeter, 1942). Conversely, an unfavorable business environment can stifle innovation and hinder economic growth.
The geography of innovation and economic growth has also been the subject of significant research, with many studies highlighting the importance of clusters and agglomerations in fostering innovation and entrepreneurship (Glaeser et al., 1992).
Alternative viewpoints and findings: Check hereMr. Mokyr was awarded half the prize for his work in explaining how sustained economic growth became the norm.●●● ●●●
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