The BBVA Foundation awards CEPR Research Fellow, Philippe Aghion, the ‘Frontiers of Knowledge Award in Economics, Finance and Management’

Monday, March 23, 2020

Congratulations to CEPR Research Fellow Philippe Aghion, and his colleague Peter Howitt, for being awarded the BBVA Foundation’s Frontiers of Knowledge Award in Economics, Finance and Management. The award has be made in recognition for their pioneering work in developing an economic growth theory based on the innovation that emerges from the process of creative destruction. 


Philippe Aghion is a long-standing contributor to CEPR and VoxEU, and we at CEPR are delighted that he has recieved this great recognition for his important work. Philippe is a Research Fellow in the CEPR Programme Area of Industrial Organization (IO), Development Economics (DE) and Macroeconomics and Growth (MG). He is also a professor at the London School of Economics (LSE) and College de France.  

You can find a selection of his Discussion Papers below:

DP14094 A Theory of Falling Growth and Rising Rents

DP14102 The innovation premium to soft skills in low-skilled occuptions

DP14443 What Are the Labor and Product Market Effects of Automation? New Evidence from France 

You can find a selecion of his latest Vox Columns below:

The innovation premium to soft skills in low-skilled occupations
02 January 2020

Chaebols and firm dynamics in the Republic of Korea
07 November 2019

Financial constraints and productivity growth
13 September 2019

The Research

Their research was developed from Joseph Schumpeter’s idea that productivity growth at the macroeconomic level stems from a process of creative destruction in which the continuous entry of new firms and technologies renders the incumbents obsolete. The BBVA foundation state that Aghion and Howitt have bridged the gap between macro and microeconomic approaches to analyse how microeconomic policies to incentivise entrepreneurship and competition affect productivity growth at the macroeconomic level. The neo-Schumpeterian growth model they devised in 1992 has proven a powerful tool to study a wide range of issues, like the linkages between innovation and job creation and destruction or its implications for wage inequality. 

The committee, which met remotely due the restrictions imposed by the COVID-19 pandemic, elected to share the award between the two economists who, it said, “have revived, developed in the framework of modern economic theory and validated empirically Schumpeter’s idea that productivity growth at the macroeconomic level stems from a process of creative destruction”.

“I am very excited to share this award with Peter Howitt for developing what is now known as the Schumpeterian growth theory, which is a new way to look at growth economics,” said Aghion after hearing of the award. Professor Howitt expressed a similar enthusiasm about sharing the distinction with his colleague: “The work I’ve done with Philippe is the most important of my career. We’ve been collaborating for 33 years now, so it’s taken up a very big part of my professional career. Now to share such an important award with him; I just couldn’t be happier”.

You can read the full BBVA article here.