Three 'Schumpeterians' Win Nobel Prize in Economics
Professor Howitt Supervised Senior Secretary Ha's Doctoral Thesis at Brown University
Senior Secretary Ha, a "Keynesian Specializing in Schumpeterian Growth Theory," Influences Lee Jaemyung Administration Policy
Peter Howitt, a professor at Brown University in the United States, is recognized as a leading 'Schumpeterian' alongside Philippe Aghion, professor at Coll?ge de France, and Joel Mokyr, professor at Northwestern University. The term 'Schumpeterian' refers to a group of scholars who follow the theories of Joseph Schumpeter, which explain sustainable growth through 'creative destruction (technological innovation)' as the foundation of continuous development.
Professor Howitt has a special connection with Ha Jun-kyung, the first Senior Secretary for Economic Growth in the Lee Jaemyung administration, as he supervised Ha's doctoral dissertation. After completing his undergraduate and graduate studies in Korea, Ha entered the doctoral program at Brown University in 2003, where Professor Howitt served as his advisor until the completion of his dissertation.
On the 13th (local time), the Nobel Committee stated, "For most of human history, stagnation has been the norm," and explained, "This year's laureates demonstrated how technology can foster sustainable growth." John Hassler, Chair of the Nobel Prize in Economics Committee, commented, "Their research shows that economic growth should not be taken for granted," adding, "We must ensure that the economy does not fall into stagnation by following the mechanisms of creative destruction."
Joseph Schumpeter, who popularized the term 'creative destruction' in economics, argued that entrepreneurial innovation creates new products, technologies, and organizations, thereby dismantling existing industries and companies and driving sustainable growth. Following this theory, Professors Howitt and Aghion have studied how technological innovation and creative destruction lead to economic growth and what kind of social foundations are necessary for this process. In 1992, the two economists gained academic attention by publishing a 'growth model through creative destruction' using mathematical modeling.
This Schumpeterian approach is expected to continue influencing the policies of the Lee Jaemyung administration. Since Senior Secretary Ha, who was mentored by Professor Howitt, has described himself as a "Keynesian specializing in Schumpeterian growth theory," it is likely that the idea of sustainable growth through technological innovation will be significantly reflected in growth policies. In 2007, Senior Secretary Ha and Professor Howitt co-authored a paper titled "An Accounting Analysis of Trends in Productivity and R&D: A Schumpeterian Critique of Semi-Endogenous Growth Theory" in the Journal of Money, Credit, and Banking.
Ha Jun-kyung, Senior Secretary for Economic Growth at the Presidential Office, is giving an interview at the Yongsan Presidential Office. (Photo by Presidential Office Photographers)
In fact, the Lee Jaemyung administration has allocated a record-high budget of 35.3 trillion won for R&D next year, an increase of 19.3% from this year. Of this, 10 trillion won has been allocated specifically for the artificial intelligence (AI) industry. President Lee Jaemyung, at the plenary session of the National Science and Technology Advisory Council, emphasized the "K-R&D Initiative," stating, "Bold R&D investment must lead to the nurturing of future strategic industries and the achievement of 'technology-driven growth,'" and added, "It is also important to establish a virtuous cycle where the fruits of innovation are shared evenly among regions and citizens, realizing 'growth for all.'"
Meanwhile, Professor Mokyr is an economist who has explained innovation-driven economic growth. The Nobel Committee acknowledged his contributions, stating that he "identified the conditions for sustainable growth through technological progress." With the announcement of the Economics Prize laureates, the Nobel Committee concluded this year's announcements.
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