IDEAS home Printed from https://ideas.repec.org/a/eee/teinso/v81y2025ics0160791x25000107.html
   My bibliography  Save this article

Use of exclusive data for corporate research on machine learning and artificial intelligence: Implications for innovation and competition policy

Author

Listed:
  • Kwon, Seokbeom
  • Porter, Alan L.

Abstract

Corporate research has been a primary driver of recent advances in Machine Learning and Artificial Intelligence (ML/AI). The present study contends that firms' prominent role in advancing the ML/AI research field is partly attributed to their use of exclusive data for ML/AI research. Using data on nearly 8000 preprints of ML/AI research papers archived in arXiv and the performance of their proposed algorithms, we found multifaceted evidence that corporate ML/AI research has exhibited a particularly significant citation impact compared to non-corporate research. Importantly, we showed that the significance of corporate research is more pronounced when it originates from the use of exclusive data. We argue that firms' use of exclusive data has been instrumental in not only encouraging their research on ML/AI, but also enhancing the research impact, which we call the “dual role” of the data in corporate research on ML/AI. In light of the policy concern regarding the potential anticompetitive implications of firms' utilization of data exclusivity in the evolving landscape of ML/AI, our conclusion calls for a comprehensive policy discourse on the consequences of firms' exclusive use of data for their ML/AI research within broader dimensions of societal welfare, including innovation and competition.

Suggested Citation

  • Kwon, Seokbeom & Porter, Alan L., 2025. "Use of exclusive data for corporate research on machine learning and artificial intelligence: Implications for innovation and competition policy," Technology in Society, Elsevier, vol. 81(C).
    • Handle: RePEc:eee:teinso:v:81:y:2025:i:c:s0160791x25000107
    DOI: 10.1016/j.techsoc.2025.102820
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0160791X25000107
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.techsoc.2025.102820?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Balmer, Roberto E. & Levin, Stanford L. & Schmidt, Stephen, 2020. "Artificial Intelligence Applications in Telecommunications and other network industries," Telecommunications Policy, Elsevier, vol. 44(6).
    2. Loureiro, Sandra Maria Correia & Guerreiro, João & Tussyadiah, Iis, 2021. "Artificial intelligence in business: State of the art and future research agenda," Journal of Business Research, Elsevier, vol. 129(C), pages 911-926.
    3. David J. TEECE, 2008. "Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy," World Scientific Book Chapters, in: The Transfer And Licensing Of Know-How And Intellectual Property Understanding the Multinational Enterprise in the Modern World, chapter 5, pages 67-87, World Scientific Publishing Co. Pte. Ltd..
    4. Michael Noel & Mark Schankerman, 2013. "Strategic Patenting and Software Innovation," Journal of Industrial Economics, Wiley Blackwell, vol. 61(3), pages 481-520, September.
    5. Galaz, Victor & Centeno, Miguel A. & Callahan, Peter W. & Causevic, Amar & Patterson, Thayer & Brass, Irina & Baum, Seth & Farber, Darryl & Fischer, Joern & Garcia, David & McPhearson, Timon & Jimenez, 2021. "Artificial intelligence, systemic risks, and sustainability," Technology in Society, Elsevier, vol. 67(C).
    6. Haefner, Naomi & Wincent, Joakim & Parida, Vinit & Gassmann, Oliver, 2021. "Artificial intelligence and innovation management: A review, framework, and research agenda✰," Technological Forecasting and Social Change, Elsevier, vol. 162(C).
    7. Zucker, Lynne G. & Darby, Michael R., 1997. "Present at the biotechnological revolution: transformation of technological identity for a large incumbent pharmaceutical firm," Research Policy, Elsevier, vol. 26(4-5), pages 429-446, December.
    8. Martin Beraja & David Y Yang & Noam Yuchtman, 2023. "Data-intensive Innovation and the State: Evidence from AI Firms in China," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 90(4), pages 1701-1723.
    9. Geuna, Aldo & Rossi, Federica, 2011. "Changes to university IPR regulations in Europe and the impact on academic patenting," Research Policy, Elsevier, vol. 40(8), pages 1068-1076, October.
    10. Seokbeom Kwon & Kazuyuki Motohashi & Kenta Ikeuchi, 2022. "Chasing two hares at once? Effect of joint institutional change for promoting commercial use of university knowledge and scientific research," The Journal of Technology Transfer, Springer, vol. 47(4), pages 1242-1272, August.
    11. Jialiang Lin & Yao Yu & Yu Zhou & Zhiyang Zhou & Xiaodong Shi, 2020. "How many preprints have actually been printed and why: a case study of computer science preprints on arXiv," Scientometrics, Springer;Akadémiai Kiadó, vol. 124(1), pages 555-574, July.
    12. Emilio Calvano & Giacomo Calzolari & Vincenzo Denicolò & Sergio Pastorello, 2020. "Artificial Intelligence, Algorithmic Pricing, and Collusion," American Economic Review, American Economic Association, vol. 110(10), pages 3267-3297, October.
    13. Hicks, Diana, 1995. "Published Papers, Tacit Competencies and Corporate Management of the Public/Private Character of Knowledge," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 4(2), pages 401-424.
    14. Kwon, Seokbeom & Motohashi, Kazuyuki, 2021. "Incentive or disincentive for research data disclosure? A large-scale empirical analysis and implications for open science policy," International Journal of Information Management, Elsevier, vol. 60(C).
    15. Patrick Bajari & Victor Chernozhukov & Ali Hortaçsu & Junichi Suzuki, 2019. "The Impact of Big Data on Firm Performance: An Empirical Investigation," AEA Papers and Proceedings, American Economic Association, vol. 109, pages 33-37, May.
    16. Colombo, Luca & Dawid, Herbert, 2016. "Complementary assets, start-ups and incentives to innovate," International Journal of Industrial Organization, Elsevier, vol. 44(C), pages 177-190.
    17. Ashish Arora & Sharon Belenzon & Andrea Patacconi, 2018. "The decline of science in corporate R&D," Strategic Management Journal, Wiley Blackwell, vol. 39(1), pages 3-32, January.
    18. Rammer, Christian & Fernández, Gastón P. & Czarnitzki, Dirk, 2022. "Artificial intelligence and industrial innovation: Evidence from German firm-level data," Research Policy, Elsevier, vol. 51(7).
    19. Kwon, Seokbeom & Marco, Alan C., 2021. "Can antitrust law enforcement spur innovation? Antitrust regulation of patent consolidation and its impact on follow-on innovations," Research Policy, Elsevier, vol. 50(9).
    20. Marco Ceccagnoli & Stuart J.H. Graham & Matthew J. Higgins & Jeongsik Lee, 2010. "Productivity and the role of complementary assets in firms' demand for technology innovations," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 19(3), pages 839-869, June.
    21. Buhmann, Alexander & Fieseler, Christian, 2021. "Towards a deliberative framework for responsible innovation in artificial intelligence," Technology in Society, Elsevier, vol. 64(C).
    22. Pierre Azoulay & Waverly Ding & Toby Stuart, 2009. "The Impact Of Academic Patenting On The Rate, Quality And Direction Of (Public) Research Output," Journal of Industrial Economics, Wiley Blackwell, vol. 57(4), pages 637-676, December.
    23. Arora, Ashish & Gambardella, Alfonso, 1994. "Evaluating technological information and utilizing it : Scientific knowledge, technological capability, and external linkages in biotechnology," Journal of Economic Behavior & Organization, Elsevier, vol. 24(1), pages 91-114, June.
    24. Nathan ROSENBERG, 2009. "Why do firms do basic research (with their own money)?," World Scientific Book Chapters, in: Nathan Rosenberg (ed.), Studies On Science And The Innovation Process Selected Works of Nathan Rosenberg, chapter 11, pages 225-234, World Scientific Publishing Co. Pte. Ltd..
    25. Rotolo, Daniele & Hicks, Diana & Martin, Ben R., 2015. "What is an emerging technology?," Research Policy, Elsevier, vol. 44(10), pages 1827-1843.
    26. Judith Chevalier, 2018. "Comment on "Artificial Intelligence, Economics, and Industrial Organization"," NBER Chapters, in: The Economics of Artificial Intelligence: An Agenda, pages 419-422, National Bureau of Economic Research, Inc.
    27. Roberto Camerani & Daniele Rotolo & Nicola Grassano, 2018. "Do firms publish? A multi-sectoral analysis," JRC Working Papers on Corporate R&D and Innovation 2018-05, Joint Research Centre.
    28. Kayvan Kousha & Mike Thelwall, 2008. "Sources of Google Scholar citations outside the Science Citation Index: A comparison between four science disciplines," Scientometrics, Springer;Akadémiai Kiadó, vol. 74(2), pages 273-294, February.
    29. Ajay Agrawal & Joshua Gans & Avi Goldfarb, 2019. "Economic Policy for Artificial Intelligence," Innovation Policy and the Economy, University of Chicago Press, vol. 19(1), pages 139-159.
    30. Seokbeom Kwon & Jan Youtie & Alan L Porter, 2021. "Interdisciplinary knowledge combinations and emerging technological topics: Implications for reducing uncertainties in research evaluation [Blade Runner Economics: Will Innovation Lead the Economic," Research Evaluation, Oxford University Press, vol. 30(1), pages 127-140.
    31. Rotolo, Daniele & Camerani, Roberto & Grassano, Nicola & Martin, Ben R., 2022. "Why do firms publish? A systematic literature review and a conceptual framework," Research Policy, Elsevier, vol. 51(10).
    32. Etzkowitz, Henry, 1998. "The norms of entrepreneurial science: cognitive effects of the new university-industry linkages," Research Policy, Elsevier, vol. 27(8), pages 823-833, December.
    33. Kenneth Arrow, 1962. "Economic Welfare and the Allocation of Resources for Invention," NBER Chapters, in: The Rate and Direction of Inventive Activity: Economic and Social Factors, pages 609-626, National Bureau of Economic Research, Inc.
    34. Yin Li & Jan Youtie & Philip Shapira, 2015. "Why do technology firms publish scientific papers? The strategic use of science by small and midsize enterprises in nanotechnology," The Journal of Technology Transfer, Springer, vol. 40(6), pages 1016-1033, December.
    35. Hall, Bronwyn H. & MacGarvie, Megan, 2010. "The private value of software patents," Research Policy, Elsevier, vol. 39(7), pages 994-1009, September.
    36. Kwon, Seokbeom & Liu, Xiaoyu & Porter, Alan L. & Youtie, Jan, 2019. "Research addressing emerging technological ideas has greater scientific impact," Research Policy, Elsevier, vol. 48(9), pages 1-1.
    37. Ulrich Schwalbe, 2018. "Algorithms, Machine Learning, And Collusion," Journal of Competition Law and Economics, Oxford University Press, vol. 14(4), pages 568-607.
    38. Fabrizio, Kira R. & Di Minin, Alberto, 2008. "Commercializing the laboratory: Faculty patenting and the open science environment," Research Policy, Elsevier, vol. 37(5), pages 914-931, June.
    39. James Bessen & Eric Maskin, 2009. "Sequential innovation, patents, and imitation," RAND Journal of Economics, RAND Corporation, vol. 40(4), pages 611-635, December.
    40. David J. Teece, 2007. "Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance," Strategic Management Journal, Wiley Blackwell, vol. 28(13), pages 1319-1350, December.
    41. Allen, Robert C., 1983. "Collective invention," Journal of Economic Behavior & Organization, Elsevier, vol. 4(1), pages 1-24, March.
    42. Emilio Calvano & Giacomo Calzolari & Vincenzo Denicolò & Sergio Pastorello, 2019. "Algorithmic Pricing What Implications for Competition Policy?," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 55(1), pages 155-171, August.
    43. Rahul Kapoor & Nathan R. Furr, 2015. "Complementarities and competition: Unpacking the drivers of entrants' technology choices in the solar photovoltaic industry," Strategic Management Journal, Wiley Blackwell, vol. 36(3), pages 416-436, March.
    44. Vincent Larivière & Yves Gingras & Cassidy R. Sugimoto & Andrew Tsou, 2015. "Team size matters: Collaboration and scientific impact since 1900," Journal of the Association for Information Science & Technology, Association for Information Science & Technology, vol. 66(7), pages 1323-1332, July.
    45. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    46. Brian Wu & Zhixi Wan & Daniel A. Levinthal, 2014. "Complementary assets as pipes and prisms: Innovation incentives and trajectory choices," Strategic Management Journal, Wiley Blackwell, vol. 35(9), pages 1257-1278, September.
    47. Kulkov, Ignat, 2021. "The role of artificial intelligence in business transformation: A case of pharmaceutical companies," Technology in Society, Elsevier, vol. 66(C).
    48. Calvano, Emilio & Polo, Michele, 2021. "Market power, competition and innovation in digital markets: A survey," Information Economics and Policy, Elsevier, vol. 54(C).
    49. Christian Rusche, 2019. "Data Economy and Antitrust Regulation," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 54(2), pages 114-119, March.
    50. Colombo, Luca & Dawid, Herbert, 2016. "Complementary assets, start-ups and incentives to innovate," International Journal of Industrial Organization, Elsevier, vol. 44(C), pages 177-190.
    51. Stephen F. Carley & Nils C. Newman & Alan L. Porter & Jon G. Garner, 2018. "An indicator of technical emergence," Scientometrics, Springer;Akadémiai Kiadó, vol. 115(1), pages 35-49, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ko, Hyunmin & Kwon, Seokbeom, 2025. "Prominence of corporate science in quantum computing research," Technological Forecasting and Social Change, Elsevier, vol. 212(C).
    2. Rotolo, Daniele & Camerani, Roberto & Grassano, Nicola & Martin, Ben R., 2022. "Why do firms publish? A systematic literature review and a conceptual framework," Research Policy, Elsevier, vol. 51(10).
    3. Schwiebacher, Franz, 2013. "Does fragmented or heterogeneous IP ownership stifle investments in innovation?," ZEW Discussion Papers 13-096, ZEW - Leibniz Centre for European Economic Research.
    4. Seokbeom Kwon & Jan Youtie & Alan Porter & Nils Newman, 2024. "How does regulatory uncertainty shape the innovation process? Evidence from the case of nanomedicine," The Journal of Technology Transfer, Springer, vol. 49(1), pages 262-302, February.
    5. Blind, Knut & Krieger, Bastian & Pellens, Maikel, 2022. "The interplay between product innovation, publishing, patenting and developing standards," Research Policy, Elsevier, vol. 51(7).
    6. Zhao, Qifeng & Kong, Dongmin & Luo, Qianfeng, 2024. "Scientific disclosure and corporate misconduct," Pacific-Basin Finance Journal, Elsevier, vol. 88(C).
    7. Levin, Mark (Левин, Марк) & Matrosova, K. (Матросова, К.), 2016. "Research, Modeling and Process Management Dissemination of Innovations in Socio-Economic Systems [Исследование, Моделирование И Управление Процессами Распространения Инноваций В Социально-Экономиче," Working Papers 1443, Russian Presidential Academy of National Economy and Public Administration.
    8. Rotolo, Daniele & Natalicchio, Angelo & Porter, Alan L. & Schoeneck, David J., 2025. "Emerging technologies, institutional groups and inter-organisational networks: The case of microneedles," Technological Forecasting and Social Change, Elsevier, vol. 213(C).
    9. Choi, Jin-Uk & Lee, Chang-Yang, 2022. "The differential effects of basic research on firm R&D productivity: The conditioning role of technological diversification," Technovation, Elsevier, vol. 118(C).
    10. Yin Li & Jan Youtie & Philip Shapira, 2015. "Why do technology firms publish scientific papers? The strategic use of science by small and midsize enterprises in nanotechnology," The Journal of Technology Transfer, Springer, vol. 40(6), pages 1016-1033, December.
    11. Hans K. Hvide & Benjamin F. Jones, 2018. "University Innovation and the Professor's Privilege," American Economic Review, American Economic Association, vol. 108(7), pages 1860-1898, July.
    12. Kim, Jongwook & Mahoney, Joseph T., 2008. "A Strategic Theory of the Firm as a Nexus of Incomplete Contracts: A Property Rights Approach," Working Papers 08-0108, University of Illinois at Urbana-Champaign, College of Business.
    13. Figueroa, Nicolás & Serrano, Carlos J., 2019. "Patent trading flows of small and large firms," Research Policy, Elsevier, vol. 48(7), pages 1601-1616.
    14. Ceccagnoli, Marco & Lee, You-Na & Walsh, John P., 2024. "Reaching beyond low-hanging fruit: Basic research and innovativeness," Research Policy, Elsevier, vol. 53(1).
    15. Frank T. Rothaermel & Maria Tereza Alexandre, 2009. "Ambidexterity in Technology Sourcing: The Moderating Role of Absorptive Capacity," Organization Science, INFORMS, vol. 20(4), pages 759-780, August.
    16. Gans, Joshua S. & Murray, Fiona E. & Stern, Scott, 2017. "Contracting over the disclosure of scientific knowledge: Intellectual property and academic publication," Research Policy, Elsevier, vol. 46(4), pages 820-835.
    17. Giovanni Dosi & Luigi Marengo & Corrado Pasquali, 2010. "How Much Should Society Fuel the Greed of Innovators? On the Relations between Appropriability, Opportunities and Rates of Innovation," Chapters, in: Riccardo Viale & Henry Etzkowitz (ed.), The Capitalization of Knowledge, chapter 4, Edward Elgar Publishing.
    18. Roberto Camerani & Daniele Rotolo & Nicola Grassano, 2018. "Do Firms Publish? A Multi-Sectoral Analysis," SPRU Working Paper Series 2018-21, SPRU - Science Policy Research Unit, University of Sussex Business School.
    19. Haeussler, Carolin & Patzelt, Holger & Zahra, Shaker A., 2012. "Strategic alliances and product development in high technology new firms: The moderating effect of technological capabilities," Journal of Business Venturing, Elsevier, vol. 27(2), pages 217-233.
    20. Xiaosheng Ju & Shengjun Jiang & Yuxuan Hu, 2025. "Corporate basic research and technological capabilities: Evidence from China," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 33(2), pages 275-304, April.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:teinso:v:81:y:2025:i:c:s0160791x25000107. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/technology-in-society .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.