Rethinking Capitalism Post-Covid: The Power of Creative Destruction

Harvard Center for International Development

Originally recorded on Friday, September 17, 2021 for the CID Speaker Series, featuring ​Philippe Aghion, Professor at the College de France, at INSEAD, and at the London School of Economics. Aghion continued the conversation with our CID Student Ambassador Ana Alvarez after an appearance at the virtual CID Speaker Series event where they shared insights from his research and book, The Power of Creative Destruction. Creative destruction is the process whereby new innovations displace old technologies. This talk will use the lens of creative destruction and of the so-called Schumpeterian growth paradigm to: (i) address some main enigma in the history of economic growth; (ii) question common wisdoms on growth policy design; (iii) rethink the future of capitalism, and how to direct the power of creative destruction to achieve sustained, greener, and more inclusive prosperity. Philippe Aghion is a Professor at the College de France, at INSEAD, and 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 analyze the design of growth policies and the role of the state in the growth process. Much of this work is summarized 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.”