‘COVID19 has everything to do with creative destruction, there are activities that after the crisis will no longer be viable’

Recognized with the 12th Frontiers of Knowledge Award in Economics, Finance and Business Management, French economist Philippe Aghion explains in this interview how sustained economic growth depends on innovation and what he calls “creative destruction”—the continuous transformation of technologies, business models, and companies. Aghion argues that competition, technological change, and strong institutions are key ingredients for promoting economic progress. He also reflects on the role of the state and the private sector in fostering radical innovation, and how these ideas can be applied to build a more dynamic and inclusive economy.

The BBVA Foundation Frontiers of Knowledge Award in Economics, Finance and Management has gone in this twelfth edition to Philippe Aghion and Peter Howitt “for fundamental contributions to the study of innovation, technical change, and competition policy,” in the words of the award citation.