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on Innovation |
| By: | Hötte, Kerstin; Tarannum, Taheya; Verendel, Vilhelm; Bennett, Lauren |
| Abstract: | It is often claimed that Artificial Intelligence (AI) is the next general purpose technology (GPT) with profound economic and societal impacts. However, without a consensus definition of AI and its empirical measurement, there are wide discrepancies in beliefs about its trajectory, diffusion, and ownership. In this study, we compare four AI patent classification approaches reflecting different technological trajectories, namely (1) short-range, (2) academic, (3) technical, and (4) broad interpretations of AI. We use US patents granted between 1990-2019 to assess the extent to which each approach qualifies AI as a GPT, and study patterns of its concentration and agency. Strikingly, the four trajectories overlap on only 1.36% of patents and vary in scale, accounting for shares of 3-17% of all US patents. Despite capturing the smallest set of AI patents, the short-range trajectory identified by the latest AI keywords demonstrates the strongest GPT characteristics of high intrinsic growth and generality. All trajectories agree, however, that AI inventions are highly concentrated within a few firms and this has consequences for competition policy and market regulation. Our study highlights how various methods of defining AI can lead to contrasting as well as similar conclusions about its impact. |
| Keywords: | Patent, Artificial Intelligence, AI, Classification, General Purpose Technology, Concentration, Inventions, Innovation |
| JEL: | O31 O33 O34 |
| Date: | 2023–05 |
| URL: | https://d.repec.org/n?u=RePEc:amz:wpaper:2023-09 |
| By: | Anna Gumpert; Kalina Manova; Cristina Rujan; Monika Schnitzer; Kalina B. Manova |
| Abstract: | This paper provides an integrated analysis of multinational companies’ global production and innovation. We establish novel stylized facts using rich data on the network of production affiliates and patent activity of German multinationals. We rationalize these facts with a heterogeneous-firm model, in which companies jointly determine the location and scale of production, basic innovation and applied innovation, under asymmetric complementarities across these three activities. Empirical evidence consistent with the model indicates that bigger MNCs innovate more intensively in terms of patent frequency and quality, and offshore innovation to more countries, including both countries with and without production affiliates. Moreover, MNCs’ innovation portfolio follows countries’ comparative advantage across technology classes, with applied innovation more likely to be co-located with production than basic innovation. |
| Keywords: | multinational firms, FDI, offshoring, innovation, patents |
| JEL: | F20 F23 F63 L23 L24 O31 O32 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11713 |
| By: | Falk Bartscherer (Technical University of Munich, TUM School of Management); Felix Kurz (Technical University of Munich, TUM School of Social Sciences and Technology); Stefan Wurster (Technical University of Munich, TUM School of Social Sciences and Technology); Hanna Hottenrott (TUM School of Management, Technical University Munich & ZEW Leibniz Centre for European Economic Research, Mannheim) |
| Abstract: | Countries worldwide implement mission-oriented innovation policies to address contemporary challenges. However, how the understanding of ‘missions’ differs across countries remains unclear. We distinguish between traditional, narrowly focused missions, and newer, wider, and multiple stakeholder-based missions. Mapping MOIPs in 39 countries reveals a growing popularity of wider missions, though narrow missions persist. We identify distinct mission profiles for different countries with varying foci and understandings of MOIPs. In-depth analyses of selected countries suggest linkages between national innovation systems and mission designs. |
| Keywords: | Mission orientation, mission innovation, innovation policy, grand challenges, policy instruments, Organisation for Economic Co-operation and Development (OECD) |
| JEL: | O14 O30 O38 |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:aiw:wpaper:40 |
| By: | Tan , Yeng-May (Xiamen University Malaysia); Amorós , José Ernesto (EGADE Business School, Tecnológico de Monterrey); Autio , Erkko (Imperial College London); Fu , Kun (Loughborough University); Park, Donghyun (Asian Development Bank) |
| Abstract: | This study explores the relationship between digitalization and entrepreneurial innovation across developing economies. We assess whether higher levels of digital technology development within a country enhance the innovation potential of its entrepreneurial ventures and how this impact varies between Asia and other regions. Using data from the Global Entrepreneurship Monitor (2013–2022) and the Global Innovation Index along with its subindexes, we examine 11 developing economies in Asia and 57 developing economies in other regions. We find that digital technology development generally boosts entrepreneurial innovation. However, our results reveal a significant regional variation. The impact on product innovation is significantly stronger in developing economies outside Asia. This suggests that while digitalization supports innovation generally, its effects may be more transformative in regions outside Asia. These findings offer valuable insights for policymakers seeking to leverage digitalization to drive innovation and economic growth. |
| Keywords: | digitalization; digital technologies; entrepreneurial innovation; ICT development; developing Asia; developing economies |
| JEL: | L26 O31 O33 O57 |
| Date: | 2025–04–28 |
| URL: | https://d.repec.org/n?u=RePEc:ris:adbewp:0776 |
| By: | Hötte, Kerstin; Jee, Su Jung; Burrell, Robert; Ring, Caoimhe |
| Abstract: | In this paper, we review the literature from law and economics on the nexus between IPRs and climate technology transfer and innovation in developing countries to summarise the empirical knowledge that exists to date. To complement the insights from the literature, we conduct twenty semi-structured interviews with experts in developing countries. The analyses are structured along the three areas where climate technology and IP may play a role, that is (1) international technology transfer (ITT), (2) indigenous innovation, and (3) follow-on adaptive innovation. |
| Date: | 2023–08 |
| URL: | https://d.repec.org/n?u=RePEc:amz:wpaper:2023-14 |
| By: | Yanqing Yang; Nan Zhang; Jinfeng Ge; Yan Xu |
| Abstract: | This paper identifies the impact of China-U.S. science and technology (S&T) friction on knowledge flows in different fields, using data on invention patent applications from China, the U.S., Europe, and the World Patent Office (WPO) along with machine-learning-based econometric methods. The empirical results find that the negative impacts of China-U.S. S&T frictions on cross-border knowledge flows are confined to a limited number of technology areas during the period of our observation. This paper further explores the characteristics of the negatively impacted technology areas, and the empirical results show that technology areas that rely more on basic scientific research, where the distribution of U.S. scientific and technological strength is more concentrated, and where the gap between U.S. and Chinese science and technology is narrower, are more likely to be the victims of the Sino-U.S. S&T friction. |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2503.21822 |
| By: | Ohki, Kazuyoshi |
| Abstract: | In this paper, we construct a tractable endogenous growth model that incorporates both incremental innovation by heterogeneous incumbents and innovation by entrants. Our model features two endogenous sources of growth: quality improvement (vertical growth) and expansion in the variety of goods (horizontal growth). We then examine the policy effects of a subsidy for incremental innovation by incumbents and a subsidy for innovation by entrants on the overall economic growth rate, as well as on the relationship between the two sources of growth. Our model confirms that incumbents with higher profit flows tend to engage in incremental innovation for a longer duration and incur greater innovation costs, which is consistent with both Schumpeter's hypothesis and the findings of Christensen (1997) Additionally, the model generates counterintuitive results that are not commonly found in the conventional literature. First, a subsidy for incremental innovation by incumbents may reduce the entry of new firms. Second, a subsidy for innovation by entrants may have a negative effect on the overall economic growth rate. |
| Keywords: | Economic Growth, \&D, In-house model, Firm-Heterogeneity, Innovation by Incumbents, IPR policy, Incremental Innovation, Sustaining Innovation |
| JEL: | O31 O32 O33 O34 O41 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:124304 |
| By: | Czarnitzki Dirk; Confraria Hugo (European Commission - JRC) |
| Abstract: | It has been a long-standing debate whether Europe suffers from an innovation gap. Recent studies indicate a global decline in research and development (R&D) productivity across various sectors, raising concerns about the efficiency of innovation investments. New panel data from the EU Industrial R&D Investment Scoreboard allow examining long-term relationships between firm productivity and R&D. The results show that EU top R&D investors struggle more than their global counterparts to convert their R&D into new ideas and marketable products. |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc141091 |
| By: | Kaya-Kasikci, Sevgi; Glass, Chris R.; Camero, Eglis Chacon; Minaeva, Ekaterina |
| Abstract: | This paper introduces a novel four-dimensional analytical framework to examine how universities are positioned within national artificial intelligence strategies amid intensifying geopolitical competition. Through systematic document analysis of policy frameworks across eight major global actors—the United Kingdom, Russia, India, the European Union, China, the United States, BigTech, and UNESCO (n=1, 836)—we identify distinct governance typologies that determine higher education's role in AI ecosystems. Our findings quantify significant variations in how universities are instrumentalized across governance contexts—from talent pipelines in market-led systems to state-directed innovation hubs in centralized approaches. We document the emergence of value-aligned "strategic education blocs" replacing universal academic networks, with India demonstrating unexpected leadership in education-specific policy provisions. This research advances theoretical understanding of "technological statecraft" in higher education, demonstrating how the interplay between sovereignty concerns, regulatory philosophies, value systems, and public-private dynamics creates systematically different operating environments for universities across geopolitical contexts. These findings provide critical benchmarks for understanding institutional positioning in the global AI landscape and challenge conventional internationalization frameworks in an era of technological nationalism. |
| Date: | 2025–03–08 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:a42rs_v1 |
| By: | Fusillo Fabrizio; Manera Maria; Orsatti Gianluca; Quatraro Francesco; Rentocchini Francesco (European Commission - JRC) |
| Abstract: | Reducing uncertainty around critical raw materials (CRM) supply is a policy priority for the EU in view of their role for advanced carbon neutral and digital technologies. A new, AI based indicator is introduced to measure the exposure of inventive activities to critical raw materials, outperforming existing approaches by identifying CRM relevance even when not immediately evident. High exposure sectors, such as aerospace & defence and ICT services, intensify inventive efforts in response to CRM supply risk, indicating strategic shifts towards substitution and diversification. European regions differ significantly in CRM exposure: some areas (e.g. parts of France, Germany, Italy, and Scandinavia) show con-siderable hidden CRM based inventive activity. Firms in CRM exposed sectors adapt by both increasing their inventive efforts and seeking alternative inventive routes, suggesting that innovation can mitigate supply risk vulnerabilities. |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc141261 |