With the proper safeguards, creative destruction – the process by which the new replaces the old – remains the way to greater...
Philippe Aghion is a Professor at the College de France and at INSEAD, and a visiting professor at the London School of Economics and a fellow of the Econometric Society and of the American Academy of Arts and Sciences. His research focuses on the economics of growth. With Peter Howitt, he pioneered the so-called Schumpeterian Growth paradigm which was subsequently used to analyse the design of growth policies and the role of the state in the growth process. Much of this work is summarised in their joint book Endogenous Growth Theory (MIT Press, 1998) and The Economics of Growth (MIT Press, 2009), in his book with Rachel Griffith on Competition and Growth (MIT Press, 2006), and in his survey “What Do We Learn from Schumpeterian Growth Theory” (joint with U. Akcigit and P. Howitt).
In 2001, Philippe Aghion received the Yrjo Jahnsson Award of the best European economist under age 45, in 2009 he received the John Von Neumann Award, and in March 2020 he shared the BBVA “Frontier of Knowledge Award” with Peter Howitt for “developing an economic growth theory based on the innovation that emerges from the process of creative destruction”. More recently Philippe Aghion produced a new book titled The Power of Creative destruction (Odile Jacob, Harvard University Press) jointly with C. Antonin and S. Bunel. While providing a reappraisal of the foundations of economic success and a blueprint for change, The Power of Creative Destruction also shows that a fair and prosperous future is ultimately ours to make.
When there’s increased turbulence, delegating power improves sales and productivity, boosting a firm’s chance of survival.