Nobel Laureate Warns: Europe Cannot Let the US and China Dominate Technological Innovation

French economist Philippe Aghion, who has just won the Nobel Prize in Economics, warned that Europe must catch up in the field of technological innovation and cannot allow the US and China to dominate global technological development for a long time. Joel Mokyr, an American economic historian, and Peter Hahn, a professor at Brown University, who also received the 2025 Nobel Prize in Economics, expressed concerns about the policy environment in the US.

On Monday, October 13, Aghion, a professor at the Paris Institute of Political Studies (INSEAD) and the French Academy, told Reuters in an interview that the global economy is at a critical turning point, with artificial intelligence, biotechnology, and green energy determining the future growth pattern. However, Europe's conservative stance on innovation and industrial policy has already made it significantly lag behind in competition with the US and China.

He said, "De-globalization and tariff barriers are becoming obstacles to growth. The larger the market, the more opportunities there are for the exchange of ideas, technology, and competition. Any policies that restrict openness are obstacles to growth."

He added, "Europe needs to learn from the US and China. While the US and China strive to balance competition and industrial policy, Europe, under the name of 'competition policy,' excessively excludes any form of industrial support."

French economist Aghion believes that Europe should redevelop its industrial policy in key strategic areas such as defense, climate, artificial intelligence, and biotechnology to promote the formation of an innovative ecosystem: "We need to find a way to have industrial policy and fair competition coexist, otherwise we will remain passive for a long time."

Mokyr and Hahn Criticize Trump Policies, Warn of Restricted Innovation

Joel Mokyr, an American economic historian, and Peter Hahn, a professor at Brown University, who also received the 2025 Nobel Prize in Economics, separately expressed concerns about the policy environment in the US.

Mokyr stated that the Trump administration's interference in research and higher education could be "the biggest self-harm in history," even "comparable to the Ming Dynasty's self-imposed isolation that banned scientific exploration." He said, "This policy is entirely driven by politics and is self-destructive."

Hahn criticized Trump's trade wars and manufacturing reshoring policies, arguing that they would only weaken market size and innovation momentum.

Strategic Warning for Europe in the Innovation Race

Aghion's comments have drawn widespread attention in Europe. Analysts believe his warning directly points to the institutional dilemmas that have long existed within the EU - a lack of systematic industrial support mechanisms under strict competition policy constraints.

Several economists pointed out that, in the context where the US is pushing AI investment through tech giants and China is focusing on developing chip and new energy industries, if Europe does not adjust its policy direction, it may lose future technological leadership.

The Royal Swedish Academy of Sciences emphasized in its award statement that the three scholars' research revealed that "innovation and openness are the fundamental drivers of long-term prosperity," while warning that economic stagnation "is the norm in human history."

This year's Nobel Prize in Economics, worth 11 million Swedish kronor (approximately 1.2 million US dollars), was awarded to the three scholars for their pioneering research on how innovation and 'creative destruction' drive economic growth.

Source: rfi

Original: www.toutiao.com/article/1845922599586889/

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