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Last week, Northwestern Professor Joel Mokyr was awarded a half-share in The Nobel Prize in Economic Sciences (AKA The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel) “for having identified the prerequisites for sustained growth through technological progress.” Anton Howes explains why this is noteworthy…

Among today’s winners of the Nobel prize in Economics is Joel Mokyr, the professor at Northwestern whose name is indelibly associated with the primacy of innovation to modern economic growth – the gradual, sustained, and unprecedented improvement in living standards that first Britain, and then country after country, have enjoyed over the past few hundred years. It was reading Mokyr’s The Enlightened Economy that first opened my eyes to the importance of studying the history of invention to explaining the causes of the Industrial Revolution, which I have since made my career.

What makes this Nobel win so remarkable, and so pleasantly surprising, is that Mokyr’s work is not the kind that is often published by economics journals, or even many economic history journals anymore. Over the past few decades, journal editors and peer-reviewers have increasingly insisted that papers must present large datasets that have been treated using complex statistical methods in order to make even the mildest claims about what caused what. Although Mokyr is a master of such methods – he was one of the early pioneers of economic history’s quantitative turn – the work for which he has won the prize is firmly and necessarily qualitative.

Mokyr’s is the economic history that gets written up in books – his classics are The Lever of Riches, The Gifts of Athena, The Enlightened Economy, and A Culture of Growth – and in readable papers shorn of unnecessary formulae. His is history accessible to the layman, though rigorously applying the insights of economics. The prize is a clear signal from the economics profession that it doesn’t just value the application of fancy statistical methods; its highest prize can go to works of history.

Whereas most of the public, and even many historians, think of the causes of modern economic growth – the beginnings of the Industrial Revolution – as being rooted in material factors, like conquest, colonialism, or coal, Mokyr tirelessly argued that it was rooted in ideas, in the intellectual entrepreneurship of figures like Francis Bacon and Isaac Newton, and in the uniquely precocious accumulation in eighteenth-century Britain of useful, often mechanically actionable knowledge. Britain, he argued, through its scientific and literary societies, and its penchant for publications and sharing ideas, was the site of a world-changing Industrial Enlightenment – the place where progress was thoughtpossible, and then became real.

One of Mokyr’s big early insights, first appearing in Lever of Riches, was that many inventions could not be predicted by economic factors. Society could enjoy remarkable productivity improvements from simply increasing the size of the market, leading to division of labour and specialization – what he labelled ‘micro-inventions’ – in the vein popularised by Adam Smith. But this could not explain an invention that appeared out of the blue, like Montgolfier’s hot air balloon in the 1780s – what he called a ‘macro-invention’, not for the magnitude of its impact, but for its novelty. Macro-inventions often required further development to make them important, but the original breakthrough could not be predicted by looking at changes in prices or the availability of resources. It ultimately came down to advances in our understanding of the world. Mokyr put the Scientific Revolution – and the factors that contributed to it – on the economist’s map.

Mokyr also looked at the relationship between different kinds of knowledge. A scientist might know, through observation, that the air has a weight. A craftsman might know, through long training and experience with glass, how to make a long glass tube. Each could not get far alone. But combining them, by creating means to ensure that scientists and craftsmen talked with one another and collaborated – through connecting their propositional and prescriptive knowledge, their heads and hands – very quickly led to the invention of thermometers, barometers, and much more besides, in an ever expanding field of knowledge. What Mokyr taught economists is that it’s not knowledge per se that makes the difference, but the way it is organized. Much of his later work has shown just how deep a pool Britain’s scientists could draw on, of skilled artisans.

In a way, Mokyr himself has practised what he preached. As editor of Princeton University Press’s book series on the Economic History of the Western World, Mokyr has for decades provided an all-important space for economists and historians to write the kinds of research that would never have been publishable in economics journals – including of explanations of the Industrial Revolution that are the polar opposite to his own. He helped keep the connection between history and economics alive.

Mokyr’s case for the primacy of knowledge and ideas was not an easy one to make to economists. They are naturally drawn to data that can be counted, and not to narrative, often no matter how well evidenced. But it appears that Mokyr’s persistence, elevated by his infectious, irrepressible sprightliness, has paid off. His prize is a long overdue recognition of the historyin economic history, and a remarkable testament to the power of ideas to persuade…

A triumph for history and the importance of ideas: “Joel Mokyr’s Nobel,” from @antonhowes.bsky.social.

See also: “Why Joel Mokyr deserves his Nobel prize,” gift article from The Economist.

* Edward Abbey, Desert Solitaire

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As we ponder the process of progress, we might send creative birthday greetings to one of the subjects Mokyr’s study, Sir Christopher Wren; he born on this date in 1632.  A mathematician and astronomer (who co-founded and later served as president of the Royal Society), he is better remembered as one of the most highly acclaimed English architects in history; he was given responsibility for rebuilding 52 churches in the City of London after the Great Fire in 1666, including what is regarded as his masterpiece, St. Paul’s Cathedral, on Ludgate Hill.

Wren, whose scientific work ranged broadly– e.g., he invented a “weather clock” similar to a modern barometer, new engraving methods, and helped develop a blood transfusion technique– was admired by Isaac Newton, as Newton noted in the Principia.

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