François Picard is pleased to welcome France’s celebrated economist and Nobel Laureate in Economic Sciences, Philippe Aghion. Currently a Professor at the Collège de France and at INSEAD, he also serves as Visiting Professor at the London School of Economics, and is a Fellow of both the Econometric Society and the American Academy of Arts and Sciences. Mr. Aghion brings passion and deep insight into the dynamic economic model of innovation known as “creative destruction.” This concept, rooted in economics and innovation theory, describes how new ideas, technologies, or practices emerge by replacing the old and obsolete. It’s the driving force behind growth in dynamic economies, a cycle where the new disrupts, and sometimes demolishes, the status quo. The term was popularised in the 1940s by economist Joseph Schumpeter, who described capitalism as a “perennial gale of creative destruction.” Now, you might assume this means Mr. Aghion embraces a form of ruthless capitalism. In fact, quite the opposite. “Competition, education, flex-security: these are the pillars of a successful growth structure,” he explains. His vision aligns closely with the social democratic models found in Scandinavian countries. Think of the economic philosophy championed by Bernie Sanders, and you’ll be in familiar territory. Here’s how Aghion puts it: “I advocate a lot for a kind of Danish system of flex-security. When you lose your job, you get 90% of your salary for two years. You are retrained, and the state helps you find a new job. I think it’s very important to make creative destruction socially acceptable — and to make sure that nobody is left out of the process." For Mr. Aghion, innovation and growth can only thrive if societies build strong institutions: universal education, robust safety nets, flexible labor policies, healthy competition, and well-crafted industrial strategies. These are not merely economic tools, they are the scaffolding that makes creative destruction both politically viable and socially just.
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