Trio of researchers share Nobel in economics for “explaining innovation-driven growth” • FRANCE 24

Trio of researchers share Nobel in economics for “explaining innovation-driven growth” • FRANCE 24

[Music] Good to have you with us tonight, Yuka. So, capping the Nobel Prize season, the economics prize went to three researchers, including a French economist. Sharon Philip Aguion shares the honor with Joel Moer and Peter Howitt for explaining how innovations and creative destruction can drive economic growth. He was one of the authors of a key report submitted to President Eman last year outlining how France could take the lead in the field of artificial intelligence. AI is one example of destructive innovations that replace older technologies and businesses. Siobhan Sulk has more. Why do humans live so much better now than our ancestors did? That’s the main question tackled by the trio of academics who’ve been awarded the 2025 Nobel Prize in Economics for their work on how innovation drives growth. American Israeli Joel Moier took half the prize for his long-term studies based on historical sources, while French economist Philip Aion shared the other half with Canadian Peter Howitt for their mathematical model quantifying creative destruction. The idea that innovations destroy older technologies and businesses, but in the long run generate stable growth and improve human welfare. It’s particularly timely amid growing anxiety over the AI revolution and its potential to make many jobs obsolete. With the understanding of the mechanisms of creative destruction provided by the laureates and the follow-up research, we have a better chance to make sure growth can continue and be guided in the direction that benefits humankind. Reacting to their win, Howard and Aion warned against the protectionist policies of the current US administration saying they could stifle innovation. Anything that gets in the way of openness is a is an obstacle to grow. So I see there kind of dark clouds currently, you know, accumulating. The three laurates will each take a share of the 1 million euro prize. Philipe Aon says he intends to invest his part in his research lab at the college de France and INSEAD business school helping to fund young researchers work on AI and green growth. Meanwhile you could the global f fight for the supply of semiconductors continues a pace in a rare move the Dutch government has taken control of a Chinese-owned chip maker citing national security concerns. The government in the Netherlands says it made a highly exceptional decision to take over nextia using the country’s availability of goods act to ensure critical supplies of semiconductors remain available in case of an emergency. It won’t own the company but can now veto managerial decisions it considers harmful. It cited serious governance shortcomings as the reason for its unprecedented move. Xperia is one of the world’s leading chip manufacturers and used to be a subsidiary of Philillips, but was bought by China’s Wing Tech back in 2018. Amsterdam last week removed a court in Amsterdam last week removed a Chinese head of the company and replaced him by a non-Chinese director. Wing shares dropped 10% in Shanghai on Monday as the company vowed to take action to protect its rights. The Chinese government has also reacted. Here’s the foreign ministry spokesperson. China consistently opposes generalizing the concept of national security and discriminatory practices against firms from specific countries. Relevant countries should adhere to market principles and refrain from politicizing economic and trade issues. China’s determination to safeguard its legitimate rights and interests is unwavering. Tensions between China and the US are flaring up again. Yuka. Well, last week, China tightened export controls on rare earths and related technologies, prompting the US president to threaten 100% tariffs, new tariffs on Chinese goods in response. Beijing on Sunday said it was not afraid of a trade war and accused Washington of double standards. Washington though is now seeking to calm down jitters with Trump saying that the situation quote will be all fine. and Treasury Secretary Scott Bassant reassuring that the expected US China summit on the sidelines of an Apex summit later this month was still on track. Meanwhile, new data shows China’s external trade is booming. Exports grew 8.3% from a year earlier in September, while imports rose 7.4%, both up significantly from August. Shipments to the United States sank 27% last month after a 33% drop in August, indicating just how far Beijing has come in diversifying its trading partners. Wy, let’s have a quick check on the markets. Yuka, well, Wall Street rallied despite the rising trade tensions. All three main indexes rebounded strongly from Friday’s sell-off. American rare earths and chip stocks leading the gains. The NASDAQ jumped more than 2% as you can see. Oil prices rose despite the ceasefire in Gaza. They too rebounding from Friday’s declines. Both the USS WTI and international Brent crude rising 1 and a fifth percent. And gold smashed through a fresh record high, rising 2% to for the day to over $4,100 an ounce. Silver did even better, up 4% for the day. And that’s it from the business desk. Thanks so much for that Yuka Yukaroya there with all the days business news. That is it from us for now. Stay with us though. We’ll be right back.

The 2025 Nobel economics prize went to Joel Mokyr, Philippe Aghion, and Peter Howitt for “explaining innovation-driven growth”.  They are credited with quantifying “creative destruction”, an idea that innovations such as steam engines and artificial intelligence that push out older technologies and businesses can be beneficial to humanity in the long run. Plus, in an unprecedented move, the Dutch government took control of Chinese-owned chipmaker Nexperia over national security concerns. 

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