The conclusion of the study - ”Economic growth does not happen spontaneously, to make it possible, systems and mechanisms that encourage 'creative manufacturing' must be preserved, so that society and the world economy do not return to stagnation.”
This year, the Nobel Prize for Economics has been jointly awarded to three economists, two from America and one from Britain. The Royal Swedish Academy of Sciences has decided to give this year's Nobel Prize for Economics to the economist. The award is to be given to them for research and research on how new technology can contribute to sustainable economic growth.
Among the economists selected for the award are Joel Mokir of Northwestern University in the US and Peter Howitt of Brown University and Philip Aghion of The London School of Economics in the UK . It was decided to distribute half (50 percent) of the economists to Joel Mokir and the remaining 50 percent to Peter Howitt and Philip Agion.
Technology is constantly advancing at a rapid pace, it affects everyone . New products and production methods (methods) replace old products . They say that this cycle will continue without stopping and this is the basis of sustainable economic growth in the long run. Their conclusion is that the standard of living, health and quality of life of people around the world have improved due to the expansion of technology.
But this is not always the case. In contrast, most of human history has been stagnant instead of growing. They conclude that while some important intermittent innovations may occasionally improve living standards and incomes, that growth will eventually reach a point of stagnation .
Joel Mokir has been awarded the Nobel Prize for his research on how new technology can advance sustainable economic development or how technology can support economic growth. Using historical sources, Mokir traces how long-term economic growth became the 'normal state'. According to him, the development of technology is a process that continues spontaneously one after the other . In order to be successful in this process, instead of knowing what to do, there should be a scientific explanation about how the technology works. Therefore, he emphasized that society should be open to new ideas and technology and develop a culture that can accept change.
Philip Agion and Peter Howitt have also studied and analyzed the mechanisms of long-term economic growth. In an article published in 1992, they developed a mathematical model (method) for a process known as 'creative destruction'. They say that when a new and improved product comes into the market, then the company selling the old product will automatically fall behind . They conclude that
technology is innovative and creative as well as constructive. New technology (goods) replaces old ones, so it is called manufacturing. Therefore, they say that the conflict generated by 'creative manufacturing' should be managed positively. Otherwise, old institutions and objects or interest groups will block new technologies and their negative impact will be on economic development and society as a whole, they say.
Economic growth does not happen spontaneously, to make it possible, the award-winning economist concluded that systems and mechanisms that encourage creative manufacturing should be protected, so that society and the world economy do not return to stagnation.
