What is the research of the three award winners about?
Prof Dr Christian Bredemeier: All three were honoured for their work in the field of growth theory, i.e. for research into the question of how people’s standard of living can rise. In particular, the focus was on sustainable growth, i.e. growth that takes place over periods of several decades or longer and not just medium-term catch-up processes.
What are the most important findings of the award-winning work?
It has long been recognised in growth economics that sustainable growth is only possible through technological progress, i.e. through improvements in the productivity of the economy. Joel Mokyr has analysed historical sources and established that the scientific underpinning of technical knowledge is crucial in order to create a cycle of ever further technical improvements. Philippe Aghion and Peter Howitt have analysed the mechanisms behind sustained growth, focusing in particular on the concept of creative destruction. This refers to the fact that in the course of technological progress, new technologies often displace old ones, which can lead to conflicts and social tensions. The concept of creative destruction was already emphasised by Joseph Schumpeter, the namesake of the Wuppertal Faculty of Economics, and further researched by Aghion and Howitt using modern methods.
What is it about their research that is particularly relevant to today’s economic situation?
Generally speaking, that progress and expertise are crucial for overcoming economic challenges. Mokyr’s work highlights the importance of science, which cannot be emphasised enough in the current situation. The creative destruction analysed by Aghion and Howitt points out that the desire for growth should also be linked to a certain willingness to let go. At the same time, it highlights the potential for conflict that politics and society should manage vigilantly.