Joel Mokyr's Contribution to the Nobel Prize: The Economic Growth Theory of Knowledge Dissemination and Institutional Innovation

DOI: https://doi.org/10.62517/jse.202611107

Author(s)

Kanxiang Chen, Weilun Huang*

Affiliation(s)

School of Finance and Trade, Wenzhou Business University, Wenzhou, Zhejiang, China * Corresponding Author

Abstract

Joel Mokyr, the winner of the 2025 Nobel Prize in Economic Sciences, adopts an interdisciplinary perspective spanning economics and history, focusing on the "Great Divergence" issue. He has constructed a unique knowledge-based economic growth theory that profoundly reveals the origin of modern sustained economic growth. His core argument is that sustained growth relies on the accumulation and dissemination of "useful knowledge" (including propositional knowledge and prescriptive knowledge). The 17th-century "Baconian Program," by incentivizing scientific research and enhancing knowledge accessibility (such as unifying terminology and spawning academic communication media), promoted a positive cycle between science and practical inventions, becoming a crucial turning point. He further proposes three prerequisites for sustained growth: the co-evolution of science and technology, the popularization of mechanical skills, and a socially open attitude toward disruptive changes. Transcending the limitations of traditional growth models, this theory reintroduces cultural and institutional factors, complementing Aghion-Howitt's "creative destruction" theory through historical analysis and modeling. It not only provides a new explanation for issues such as the origin of the Industrial Revolution but also offers important insights for formulating economic growth policies in contemporary times and China. Mokyr's theory has been recognized by the Nobel Prize for its originality, innovative interdisciplinary research methods, and strong practical explanatory power.

Keywords

Joel Mokyr; Nobel Prize in Economic Sciences; Economic Growth Theory; Baconian Program; Knowledge Accessibility; Creative Destruction

References

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