“Sustained economic growth requires innovation and creativity”

On the occasion of his 9th Frontiers of Knowledge Award in Economics, Finance and Management, economist Daron Acemoglu explains how his research shows that sustained economic growth depends on inclusive institutions—those that provide broad opportunities and incentives to invest, innovate, and develop technology. In contrast, extractive institutions concentrate power and resources, limiting progress. He emphasizes that long-term prosperity requires innovation, creativity, and a political environment that distributes power in a balanced way.

The BBVA Foundation Frontiers of Knowledge Award in Economics, Finance and Management has gone in this ninth edition to Daron Acemoglu “for fundamental contributions to the economics of growth and development that highlight the important role of institutions in economic development, using an innovative mix of theory, historical data, and sophisticated econometric analysis.