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How can artificial intelligence break through technological blockades? - evidence from China

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  • Gao, Pengqun
  • Wang, Guangyu
  • Li, Yinxia

Abstract

Using data from 2007 to 2023, this study systematically examines the impact of artificial intelligence (AI) development on firms’ degree of technological blockades. The results reveal that firms with superior AI development mention technology blockade-related terms less frequently in annual reports, indicating that AI significantly alleviates the extent of technological blockades encountered by enterprises. Mechanism analysis reveals that this effect is primarily realized through data assetization and alleviating financing constraints. Heterogeneity analysis demonstrates that the mitigating effect of AI is more pronounced for high-tech industries, nonstate-owned enterprises, and firms located in the eastern region. This study provides microlevel evidence on how AI enhances firms’ resilience against external technology restrictions in the context of deglobalization, offering policy insights for advancing technological self-reliance and ensuring industrial chain security.

Suggested Citation

  • Gao, Pengqun & Wang, Guangyu & Li, Yinxia, 2026. "How can artificial intelligence break through technological blockades? - evidence from China," Finance Research Letters, Elsevier, vol. 90(C).
    • Handle: RePEc:eee:finlet:v:90:y:2026:i:c:s1544612325026212
    DOI: 10.1016/j.frl.2025.109372
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    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • F50 - International Economics - - International Relations, National Security, and International Political Economy - - - General
    • L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment

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