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Does artificial intelligence promote disruptive innovation in SRDI enterprises: Evidence from LLM-based text analysis

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  • Zhang, Xu
  • Yan, Zhongmin
  • Rauf, Abdul

Abstract

In the wave of digital transformation, whether artificial intelligence (AI) can drive disruptive innovation in small and medium-sized enterprises (SMEs) has become an important research question. Using data on China's “Specialized, Refined, Distinctive, and Innovative” (SRDI) enterprises from 2014 to 2024, this paper measures the penetration level of AI in enterprises based on large language models (LLMs) text analysis methods, and constructs a large-scale patent text corpus to derive a disruptive innovation index. Results show that the AI adoption significantly enhances the disruptive innovation level of SRDI enterprises, and the conclusion still holds true after robustness tests. Mechanism analysis reveals that AI promotes disruptive innovation by optimizing human capital structures, increasing R&D investment, and facilitating access to policy support. The positive effect of AI on disruptive innovation is stronger for enterprises in eastern regions and high-technology sectors. This study deepens understanding of how AI drives disruptive innovation and provides implications for intelligent manufacturing development.

Suggested Citation

  • Zhang, Xu & Yan, Zhongmin & Rauf, Abdul, 2026. "Does artificial intelligence promote disruptive innovation in SRDI enterprises: Evidence from LLM-based text analysis," Socio-Economic Planning Sciences, Elsevier, vol. 104(C).
    • Handle: RePEc:eee:soceps:v:104:y:2026:i:c:s0038012126000029
    DOI: 10.1016/j.seps.2026.102416
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