On October 13, the Royal Swedish Academy of Sciences awarded the 2025 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel to Joel Mokyr, Philippe Aghion, and Peter Howitt.
Half of the prize goes to Mokyr "for having identified the prerequisites for sustained growth through technological progress," while Aghion and Howitt share the other half "for the theory of sustained growth through creative destruction."
In a previous exclusive interview with South, French economist Philippe Aghion praised China's significant innovation potential and hoped France could work with China in the fields of trade and AI.
It is in the world's interest that China keeps innovating
Prof. Aghion, known for expanding upon Joseph Schumpeter's theory of creative destruction, emphasized the crucial roles of competition and academic freedom in fostering innovation.
He highlighted China's proactive research policies, including programs that attract back Chinese researchers who studied and worked abroad, as well as measures to boost research and development (R&D) and basic research. As a result, he believes the country has the potential to produce substantial fundamental innovations.
He notably commended the Greater Bay Area (GBA) for its positive initiatives to support startups, stressing the importance of having startups that can grow and thrive.
France can collaborate on trade and AI issues with China
Prof. Aghion proposed two fields for collaboration between France and China: trade and artificial intelligence (AI). He explained that free trade enhances competition, which in turn fosters innovation, and noted that AI represents a true revolution.
He elaborated that free trade will create more opportunities for innovation in both countries, provided there is a well-organized World Trade Organization (WTO). "For all the countries that are part of the WTO, they have better outlets for their products. This leads to greater opportunities for innovation," Prof. Aghion added.
Additionally, trade facilitates knowledge transfer, a crucial factor in innovation-led growth.
"AI has significant growth potential," Prof. Aghion remarked. In this context, he suggested that China and France could collaborate in two ways: by developing computing power and implementing effective applications of AI, as AI has the potential to drive significant growth and create new employment opportunities.
Reporter: Zhang Ruijjun
Video & Poster: Guo Hongda
Script: Zhang Ruijjun
Editor: Ou Xiaoming, James Campion, Shen He
