The economist, a former communist turned social-liberal, champions an economic model based on “the power of creative destruction,” the title of his latest book. This concept was coined by American economist Joseph Schumpeter in the 1940s. It highlights the role of innovation in driving growth, which is stimulated by renewing the productive system. In turn, certain activities or organizational methods automatically become obsolete. “The idea is to say that long-term growth comes from innovation. And not from capital accumulation, which eventually runs out of steam,” he explained in a 2019 interview.
Reacting to his prize, Philippe Aghion again urged Europe not to fall behind “China and the United States” and not to let these two countries “monopolize technological innovation.” Appearing on the TV news on Monday, Philippe Aghion also commented on the pension reform in France; he argued for it to be “halted” until the next presidential election in 2027.
Political and Academic Career
A professor at the Collège de France and the London School of Economics, the 69-year-old economist started in the Communist Party due to family tradition, before shifting to the center and adopting a social-liberal viewpoint. He has supported various political figures throughout his career.
After the election of Emmanuel Macron, Philippe Aghion helped shape the early days of Macronism. As an advisor to the President of the Republic, he pushed him to encourage innovation and tech ecosystems. Philippe Aghion maintained constructive exchanges with the president and other supporters.
Just one week ago, he was at the Élysée Palace to be appointed Officer of the National Order of Merit. Following the Nobel announcement, the President of the Republic praised Philippe Aghion as a source of “French pride” and a “global inspiration,” in his view.