Since childhood, he wanted to understand the world to change it for the better. That’s why Philippe Aghion became an economist – also a professor at the Collège de France specializing in innovation and growth – and since October 2025, a Nobel Prize laureate in economics.
At the Cannes International Real Estate Professionals Fair, the audience came in large numbers to listen to his theory that would help overcome a lingering crisis in France and Europe.
He didn’t talk about real estate but gave some clues to lift the Old Continent. All in English because the audience consisted of professionals from 90 countries.
“What do you think is the engine of growth? Without a doubt, it’s technological progress. For a long time, it was thought, as Robert Solow argued, that growth was driven by capital accumulation, but that doesn’t work in the long term. The primary engine of growth is technological progress, and I support Schumpeter’s thesis of creative destruction, a process where innovations will replace old technologies.”
“This implies that artificial intelligence will destroy jobs and create new ones? Absolutely. We can see in AI a great danger, but it’s also an opportunity that can save France and Europe from the decline they are facing. We have Yann LeCun, former head of AI at Meta, innovating in Paris. This is a positive step, so please, don’t impose a Zucman tax that would drive him away (laughter in the room).”
“You say that France and Europe are declining. Can we turn things around and how? Yes, thanks to disruptive innovation. Remember that between 1945 and 1985, the GDP per capita of the Eurozone caught up with that of the United States, thanks to the Marshall Plan, thanks to electricity-related technologies. But afterwards, when it came to innovating, we didn’t show up and missed out on the information and communications technology revolution. From there, the European GDP per capita has declined compared to the United States and China. Disruptive innovation is not happening here. Our European market for goods and services is fragmented, with countries imposing their regulations on top of EU rules.”
“How to encourage innovation? We need a financial ecosystem with venture capital. That means pension funds pushing for risk. And for that to happen, we need to change our culture around failure and encourage it! This will allow startups to take more risks to achieve a disruptive idea.”
“How to proceed? In my opinion, there are three essential pillars to build a new growth model. First, we need a real competition policy where we don’t block new ideas for fear of them replacing ours. On the contrary, they will push us to do better. In this regard, we should thank the United States for waking us up. This competition policy will contribute to economic dynamism.”
“What is the next pillar after implementing a competition policy? The education system. We need to focus on education, but also on inclusion, not leaving anyone behind, or we will face a rise in populism. Growth must be inclusive, and no AI in schools! Our children must first learn to learn.”
“And the third pillar? I call it flexicurity. In my opinion, it is essential to address the AI revolution. When you lose your job, especially due to the AI revolution, you should be supported. In Denmark, for example, they offer 90% of your salary for two years while training you to find a new job. That’s what I call flexicurity.”
“You also mentioned the importance of institutions like DARPA in the United States. And what about us? Europe indeed needs institutions like DARPA, which has birthed all NASA programs, pushed for GPS, autonomous navigation, etc. This agency funds research in strategic areas. In France and Europe, despite having top researchers, computer scientists, and other scientists, we lack such an institution capable of long-term research funding.”
“Do you believe Europe can catch up technologically? Yes. I believe that the revolution around artificial intelligence is one that we must not miss. Encouraging failure, taking risks, relaxing competition rules, and investing in an inclusive and quality educational system will be the key. France is a democratic country with a genuine social model and an environmental concern, equipped with quality researchers, so let’s use these strengths to conquer the 21st century.”
(1) Independent research and development agency under the U.S. Department of Defense.
