Philippe Aghion facts for kids

Quick facts for kids Philippe Aghion
Aghion at Boston University in February 2015
Born	1956 (age 68–69) Paris, France
Institutions	Collège de France INSEAD London School of Economics Harvard University University College London Nuffield College, Oxford Massachusetts Institute of Technology
Field	Innovation Economic growth Organisations Contract theory
School or tradition	Neo-Schumpeterian
Alma mater	École Normale Supérieure de Cachan Paris 1 Panthéon-Sorbonne University (DEA) Harvard University (PhD)
Awards	BBVA Foundation Frontiers of Knowledge Award (2019) Nobel Prize in Economic Sciences (2025)

Philippe Mario Aghion, born in 1956, is a famous French economist. He teaches at several important universities, including the Collège de France and the London School of Economics. He also taught at Harvard University for many years. In 2025, he shared the Nobel Memorial Prize in Economic Sciences with Peter Howitt. They won for their ideas about how countries can keep growing through something called "creative destruction".

Who is Philippe Aghion?

Early Life and Learning

Philippe Aghion was born in Paris, France, in 1956. His mother, Gaby Aghion, was a famous French fashion designer. She started the fashion house Chloé. Philippe studied mathematics at a top school in France, the École Normale Supérieure de Cachan. He then earned advanced degrees in mathematical economics from Paris 1 Panthéon-Sorbonne University. Later, he received his PhD in economics from Harvard University in 1987.

His Work as an Economist

Philippe Aghion started his teaching career in 1987 at the Massachusetts Institute of Technology. He also worked at the European Bank for Reconstruction and Development. Later, he taught at Nuffield College, Oxford and University College London. From 2002 to 2015, he was a professor at Harvard University. After that, he became a professor at the London School of Economics. His main work is about how economies grow and how new ideas, called innovation, help this growth. With Peter Howitt, he developed a key idea called "creative destruction". This idea explains how new inventions replace old ones. He has written several books about these important economic ideas. He is also a member of the American Academy of Arts and Sciences.

Big Ideas in Economics

Philippe Aghion's early research looked at how businesses make agreements and manage their money. In 1992, with Peter Howitt, he introduced a major idea called endogenous growth theory. This theory uses the concept of creative destruction to explain how economies grow. It has helped many other economists study what makes countries richer. Later, he studied how competition and different rules (institutions) affect growth. He also looked at how new technologies like automation and artificial intelligence change the economy. He even studied how to achieve "green growth" which means growing without harming the environment.

Creative Destruction: A Big Idea

In 1992, Aghion and Howitt explained "creative destruction" in a new way. This idea says that new inventions and businesses constantly replace older ones. For example, smartphones replaced flip phones, and streaming services replaced video rental stores. This process helps economies grow. Businesses try to invent new things to earn more money (the "carrot"). But if they don't innovate, new companies will come along and take their place (the "stick"). However, if a company becomes too powerful, it might stop new companies from starting. This can slow down innovation and growth. Aghion and Howitt showed how this balance works for different types of businesses.

How Innovation Happens

Sometimes, innovation happens in big jumps, where a new idea completely overtakes an old one. This is like "leapfrogging." But Aghion's later work also looked at "step-by-step innovation." This is when improvements happen slowly, like climbing a ladder. A company might catch up to a leader without immediately becoming the new leader. When companies are close to each other in terms of technology, they compete more. This competition makes them innovate faster to stay ahead or catch up. This is called the "escape-competition effect."

The "Middle-Income Trap" Explained

Aghion also studied something called the "middle-income trap." This happens when a country grows quickly but then gets stuck. It can't become a rich, advanced economy. At first, these countries grow by copying technologies and investing a lot. But eventually, they need to start inventing new things themselves. To avoid this trap, countries need to change their rules and policies. They must support better education, scientific research, and fair competition. This helps them move from just copying to truly innovating.

Growth, Fairness, and Education

Philippe Aghion has also explored how economic growth, fairness (inequality), and the ability to move up in society (social mobility) are connected. He found that new ideas and inventions can sometimes make the gap between rich and poor wider. This is because those who are at the forefront of new technology often benefit the most. However, this can be okay if everyone has a chance to succeed. Education is super important here. Good schools and training help people join the world of innovation. He also looked at how taxes and government programs can help. Simple tax rules can encourage new businesses. Support systems can help people take risks and try new ideas.

Helping Governments and Universities

Philippe Aghion has also shared his economic ideas with political leaders. For example, he supported François Hollande during the 2012 French presidential election. He also supported Emmanuel Macron in 2017. He believes his economic ideas can help countries grow and create jobs.

Advice for Universities

In 2010, Philippe Aghion led a group of experts to study how universities are run. They looked at top universities like Harvard and Oxford. Their report suggested ways to improve how universities are managed. They proposed having a board of directors, mostly with people from outside the university. This board would choose a president. They also suggested an "academic senate" where teachers and researchers could share their ideas. This helps universities make good decisions about teaching and research.

Other Important Roles

Besides teaching and researching, Philippe Aghion is involved in many other activities. He is a member of the American Academy of Arts and Sciences. He also advises important groups like the World Bank and the International Monetary Fund. These groups work to improve economies around the world. In 2016, he advised the United Nations on health, jobs, and economic growth.

Awards and Recognition

Philippe Aghion has received many important awards for his work. In 2019, he and Peter Howitt received the BBVA Foundation Frontiers of Knowledge Awards. In 2025, he and Peter Howitt shared half of the Nobel Memorial Prize in Economic Sciences. They won for their important theory about how economies grow through "creative destruction."

Books by Philippe Aghion

• Aghion, Philippe; Antonin, Celine; Bunel, Simon (2021): The Power of Creative Destruction: Economic Upheaval and the Wealth of Nations. Harvard University Press. ISBN: 978-0-674-97116-5.
• Aghion, Philippe; Howitt, Peter (2009); The Economics of Growth. MIT Press. ISBN: 978-0-262-01263-8
• Aghion, Philippe; Griffith, Rachel (2006). Competition and Growth. MIT Press. ISBN: 978-0-262-01218-8
• Aghion, Philippe; Durlauf, Steven N. (2005). Handbook of economic growth. 1A. Amsterdam: Elsevier. ISBN: 978-0-444-52041-8.
• Aghion, Philippe; Durlauf, Steven N. (2005). Handbook of economic growth. 1B. Amsterdam: Elsevier. ISBN: 978-0-444-52043-2.
• Aghion, Philippe; Howitt, Peter (1998). Endogenous growth theory. Cambridge, Massachusetts: MIT Press. ISBN: 978-0-262-01166-2.

See also

In Spanish: Philippe Aghion para niños