🏆 Innovation Wins the Nobel: What It Means for Nonprofit Tech

Emelie Smith

13 Oct 2025 — 1 min read

Today, the 2025 Nobel Prize in Economic Sciences was awarded to Joel Mokyr, Philippe Aghion, and Peter Howitt for their groundbreaking work on innovation-driven economic growth and the theory of creative destruction—the process by which new technologies replace old ones, fueling progress and prosperity[1].

Their research isn’t just academic. It’s a wake-up call for every sector—including nonprofits.

💡 What Is Creative Destruction?

Creative destruction is the idea that innovation doesn’t just build—it disrupts. New products, systems, and ideas replace outdated ones. This cycle is what drives sustained growth, according to Aghion and Howitt’s influential 1992 model[2].

Mokyr’s contribution emphasized that for innovation to be self-sustaining, we need more than just “what works”—we need to understand why it works. He also highlighted the importance of societies being open to new ideas and willing to embrace change[1].

🧭 Why This Matters for Nonprofits

Nonprofits often operate in environments where change is slow and legacy systems dominate. But the Nobel committee’s message is clear: growth isn’t guaranteed. It depends on our ability to innovate—and to let go of what no longer serves us.

For nonprofit leaders, this means:

Reevaluating tech stacks: Are your systems helping or hindering your mission?
Investing in digital transformation: Cloud-based ERP, data analytics, and AI can unlock new capacity.
Championing openness: Innovation thrives in cultures that welcome experimentation and learning.

🌍 Innovation with Purpose

The laureates also warned of risks: monopolies in AI, environmental limits, and protectionist policies that stifle progress[2]. For nonprofits, this is a reminder to:

Advocate for ethical tech and open markets
Align innovation with sustainability
Ensure that digital transformation is inclusive and mission-aligned

✨ Final Thoughts

The Nobel Prize doesn’t just honor past achievements—it points to the future. For nonprofits, embracing innovation isn’t optional. It’s how we stay resilient, relevant, and ready to meet the challenges ahead.

Let’s take inspiration from Mokyr, Aghion, and Howitt—and build tech stacks that serve the greater good.

References[1] www.forbes.com[2] Forbes

The Hidden Power of Mid-Range Donors: Why They Matter and How to Engage Them at Scale

Introduction: When we talk about fundraising, the spotlight often shines on two extremes: major donors who make transformational gifts and broad-based campaigns that bring in thousands of small contributions. But there’s a powerful group in the middle—mid-range donors—who often go unnoticed. These donors may not write six-figure

Leading with Heart: Inspired by 4 Skills Every New Nonprofit Manager Needs to Master

Introduction: When I came across this article in Nonprofit Pro it struck a chord. Leadership in the nonprofit sector isn’t just about managing—it’s about inspiring. The piece highlights four essential skills for new managers, and I couldn’t agree more. Building on those ideas, I want to

Why Good Data Matters—And How ERP Helps Everyone Use It

In every nonprofit I’ve worked with—from grassroots teams to national networks, higher ed institutions to tribal governments—one truth has remained constant: good data empowers good decisions. But too often, data lives in silos. Finance has one version of the truth, fundraising another, and program teams yet another.

Why Deep Sector Empathy Matters When Choosing a Software Partner

In the nonprofit world, every dollar matters. Every hour counts. Every decision—especially those involving technology—can either accelerate your mission or slow it down. That’s why choosing the right software partner isn’t just about features or price. It’s about empathy—specifically, deep sector empathy. What Is