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Differentiating artificial intelligence activity clusters in Australia

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  • Bratanova, Alexandra
  • Pham, Hien
  • Mason, Claire
  • Hajkowicz, Stefan
  • Naughtin, Claire
  • Schleiger, Emma
  • Sanderson, Conrad
  • Chen, Caron
  • Karimi, Sarvnaz

Abstract

We demonstrate how cluster analysis underpinned by analysis of revealed technology advantage can be used to differentiate geographic regions by activity in artificial intelligence (AI). Our analysis uses novel datasets on Australian AI businesses, intellectual property patents and labour markets to explore location, concentration and intensity of AI activities across 333 geographical regions. We find that Australia's AI business and innovation activity is clustered in geographic locations with higher investment in research and development. Through cluster analysis we identify three tiers of AI capability regions that are developing across the economy: ‘AI hotspots’ (10 regions), ‘Emerging AI regions’ (85 regions) and ‘Nascent AI regions’ (238 regions). While the AI hotspots are mainly concentrated in central business district (CBD) locations, there are examples when they also appear outside CBD in areas where there has been significant investment in innovation and technology hubs. Policy makers and investors can use these results to learn about the current landscape of AI business and innovation activities in Australia, identify potential growth opportunities in AI capabilities and to guide future policy and business decisions.

Suggested Citation

  • Bratanova, Alexandra & Pham, Hien & Mason, Claire & Hajkowicz, Stefan & Naughtin, Claire & Schleiger, Emma & Sanderson, Conrad & Chen, Caron & Karimi, Sarvnaz, 2022. "Differentiating artificial intelligence activity clusters in Australia," Technology in Society, Elsevier, vol. 71(C).
    • Handle: RePEc:eee:teinso:v:71:y:2022:i:c:s0160791x22002457
    DOI: 10.1016/j.techsoc.2022.102104
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    1. Hajkowicz, Stefan & Sanderson, Conrad & Karimi, Sarvnaz & Bratanova, Alexandra & Naughtin, Claire, 2023. "Artificial intelligence adoption in the physical sciences, natural sciences, life sciences, social sciences and the arts and humanities: A bibliometric analysis of research publications from 1960-2021," Technology in Society, Elsevier, vol. 74(C).

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    More about this item

    Keywords

    Artificial intelligence; Cluster; Revealed technology advantage; Regional innovation; Australia;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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