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THE 2025 Nobel Prize in Economic Sciences was awarded to Joel Mokyr, Philippe Aghion, and Peter Howitt for explaining how innovation drives economic growth. Their work shows that progress is not only about having more people or more machines, it is about having better ideas and better ways of doing things. This message matters deeply for Bangladesh. For decades, our growth has been powered by hard work, garments exports, and remittances. But these engines are slowing down. To move forward, we must now learn how to grow through innovation, by thinking differently, creating new products and using knowledge to solve real problems.

The Nobel-winning economists remind us that the most successful nations are those that encourage people to experiment, invent and learn. Joel Mokyr shows that societies grow faster when they respect knowledge and curiosity. He demonstrated that if innovations are to succeed one another in a self-generating process, we not only need to know that something works, but also why it works. Philippe Aghion and Peter Howitt explain how ‘creative destruction’, where new ideas replace old ones, keeps economies dynamic and productive. Innovation represents something new and is therefore creative, yet it is also destructive, as the company whose technology becomes passé is outcompeted. In simple terms, when people are free to try new things, fail, and try again, the whole country benefits. ‘The laureates’ work shows that economic growth cannot be taken for granted. We must uphold the mechanisms that underlie creative destruction, so that we do not fall back into stagnation,’ says John Hassler, chair of the Committee for the Prize in Economic Sciences.

Fahmida Khatun, executive director of the Centre for Policy Dialogue, aptly noted in a recent commentary: ‘This year’s Nobel Prize is a prize for a particular way of seeing growth, as a restless, experimental process that constantly replaces old technologies, firms and even mindsets with better ones.’ For Bangladesh, this perspective is both a challenge and an opportunity. The country’s economic ascent, driven by ready-made garments and remittances, has been impressive. Yet, as we approach graduation from Least Developed Country status, Bangladesh must pivot towards innovation-led growth. This means investing in research and development, strengthening intellectual property rights, and fostering collaboration between universities and industries.

As Dr Selim Raihan, executive director of South Asian Network on Economic Modelling, argues, ‘We need to create an ecosystem where innovation is rewarded, not stifled. That includes reforming our education system, easing access to finance for start-ups, and ensuring regulatory predictability.’ The laureates’ insights also highlight the importance of inclusive innovation. As Aghion and Howitt have shown, innovation can exacerbate inequality if not accompanied by social protections. For Bangladesh, this means ensuring that rural populations, women and marginalised groups are not left behind in the digital transition.

Bangladesh is ready for a new chapter, one built on ideas and creativity. To achieve this, our education system must inspire thinking rather than memorisation. Schools and universities should encourage students to ask questions, solve problems and think independently. Science, technology, engineering and mathematics need to be taught in ways that nurture creativity and curiosity rather than conformity. At the same time, investment in research and development is essential. Bangladesh currently spends less than half of one per cent of its gross domestic product on research, whereas countries that lead in innovation invest several times more. If we can raise this share even modestly, to around one per cent by 2030, the dividends in technology, industry and agriculture could be transformative.

Equally important is building a supportive environment for innovators. Too many bright ideas die young because of excessive bureaucracy, corruption, or lack of resources. Simplifying regulations, ensuring fair protection of intellectual property and providing young inventors and entrepreneurs with access to finance and mentorship would help unleash the creative energy that already exists in the country.

Innovation should not be confined to high-tech factories or urban start-ups. It must reach our villages, where simple technologies can revolutionise farming, improve rural healthcare, and expand access to renewable energy. When innovation becomes woven into daily life, growth becomes more inclusive and more humane. Bangladesh has already shown the world that determination can transform a poor country into a fast-growing one. Now we must take the next leap, from efficiency to creativity. If we follow the lessons of Mokyr, Aghion, and Howitt, Bangladesh can build an economy where ideas become our most valuable export.

The future will belong not only to those who work hard, but also to those who think smart. Our goal should be simple yet ambitious: to make ‘Invented in Bangladesh’ is a phrase recognised around the world. That will be our true success, not a medal from Stockholm, but a stronger, smarter, and fairer nation built by our own imagination.

Yet one of the biggest barriers to innovation in Bangladesh lies within our governance culture. Too often, decisions are made through endless meetings and lengthy discussions, rather than through research, data, or experimentation. To build an innovation-led economy, we must move from a meeting-driven culture to an evidence-driven one. National decisions should be guided by facts and studies, not merely by hierarchy or habit. Bangladesh has more than 17 crore people, yet less than 1 per cent, roughly 0.5 per cent, are active researchers or members of think-tanks. These few individuals carry the nation’s analytical capacity, but their work is frequently overlooked in policymaking.

The government must identify, connect and empower this intellectual community — our researchers, universities and policy institutes — so that evidence informs decisions at every level. Without this shift, innovation will remain a slogan rather than a system.

Bangladesh can and must learn that innovation is not a luxury, but a survival strategy in the digital age. The true wealth of a nation lies not in its garments or remittances, but in its ideas, institutions and inventors. By cultivating a national culture of creativity and a governance system that values knowledge, Bangladesh can make the leap from ‘Made in Bangladesh’ to ‘Invented in Bangladesh.’

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Md Moniruzzaman is a professor at Bangladesh Institute of Governance and Management and former additional secretary to the Government of Bangladesh. Md Mominur Rahman is an assistant professor at Bangladesh Institute of Governance and Management.