What creates sustained economic growth? This year’s laureates used different methods to answer this question. Through his research in economic history, Joel Mokyr – awarded the 2025 prize in economic sciences – has demonstrated that a continual flow of useful knowledge is necessary.
This useful knowledge has two parts: the first is what Mokyr refers to as propositional knowledge, a systematic description of regularities in the natural world that demonstrate why something works; the second is prescriptive knowledge, such as practical instructions, drawings or recipes that describe what is necessary for something to work.
Mokyr used historical sources as one means to uncover the causes of sustained growth becoming the new normal. He demonstrated that if innovations are to succeed one another in a self-generating process, we not only need to know that something works, but we also need to have scientific explanations for why. The latter was often lacking prior to the industrial revolution, which made it difficult to build upon new discoveries and inventions. He also emphasised the importance of society being open to new ideas and allowing change.
#NobelPrize
Oct 13, 2025 · 9:48 AM UTC




























