“Acceptance Speech” Frontiers of Knowledge Award 2019 in Economics, Finance and Management

Acceptance speech by Philippe Aghion, winner of the 2019 Frontiers of Knowledge Award in Economics, Finance and Management, who was honored alongside Peter Howitt for their fundamental contributions to the study of innovation, technological change and competition policy. Their research developed Schumpeterian growth theory, which explains how innovation drives economic progress through a process of creative destruction, whereby new technologies replace older ones and transform market structures.

Aghion explains the three pillars of his theory: the cumulative nature of innovation, the role of entrepreneurs and the replacement of obsolete technologies. He reflects on the need to balance incentives for innovation with policies that prevent established companies from obstructing new competitors. He also examines how education, social protection and competition policies can promote more in

Acceptance speech by Philippe Aghion, winner of the 2019 Frontiers of Knowledge Award in Economics, Finance and Management, who was honored alongside Peter Howitt for their fundamental contributions to the study of innovation, technological change and competition policy. Their research developed Schumpeterian growth theory, which explains how innovation drives economic progress through a process of creative destruction, whereby new technologies replace older ones and transform market structures.

Aghion explains the three pillars of his theory: the cumulative nature of innovation, the role of entrepreneurs and the replacement of obsolete technologies. He reflects on the need to balance incentives for innovation with policies that prevent established companies from obstructing new competitors. He also examines how education, social protection and competition policies can promote more inclusive growth, and advocates the potential of innovation to address challenges such as climate change and help transform capitalism.