India, Oct. 16 -- Every Nobel Prize in Economics tells a story about how we understand prosperity. This year's winners - Joel Mokyr, Philippe Aghion and Peter Howitt - have been honoured for explaining how knowledge powers economic growth and how economies renew themselves through creative destruction. Their research answers an age-old question that has puzzled thinkers from Adam Smith to Amartya Sen: Why do some nations grow while others stagnate? And it offers timely lessons for countries like India with aspirations to rapidly climb the growth ladder.

For centuries, economists have debated: What truly drives economic growth?

Early theories pointed to geography; the claim that tropical climates bred lethargy, disease and poor soil. Oth...