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The spatial distribution of public support for AI research
[Agglomeration and Productivity: Evidence from Firm-Level Data]

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  • Farhat Chowdhury
  • Albert N Link
  • Martijn van Hasselt

Abstract

A spatial distributional analysis of the population of Phase II research projects funded by the US SBIR program in FY 2020 shows differences across states in projects focused on artificial intelligence (AI). AI is a relatively new research field, and this paper contributes to a better understanding of government support for such research. We find that AI projects are concentrated in states with complementary AI research resources available from universities nationally ranked in terms of their own AI research. To achieve a more diverse spatial distribution of AI-related technology development, the availability of complementary AI research resources must be expanded. We suggest that the National Science Foundation’s National AI Research Institutes represents an important step in this direction.

Suggested Citation

  • Farhat Chowdhury & Albert N Link & Martijn van Hasselt, 2022. "The spatial distribution of public support for AI research [Agglomeration and Productivity: Evidence from Firm-Level Data]," Science and Public Policy, Oxford University Press, vol. 49(4), pages 573-579.
    • Handle: RePEc:oup:scippl:v:49:y:2022:i:4:p:573-579.
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    File URL: http://hdl.handle.net/10.1093/scipol/scac008
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    References listed on IDEAS

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    1. Albert N. Link & John T. Scott, 2013. "Employment growth from public support of innovation in small firms," Chapters, in: Public Support of Innovation in Entrepreneurial Firms, chapter 3, pages 41-64, Edward Elgar Publishing.
    2. Martin Andersson & Hans Lööf, 2011. "Agglomeration and productivity: evidence from firm-level data," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 46(3), pages 601-620, June.
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    4. Leyden, Dennis Patrick & Link, Albert N., 2015. "Public Sector Entrepreneurship: U.S. Technology and Innovation Policy," OUP Catalogue, Oxford University Press, number 9780199313853.
    5. Audretsch, David B, 1998. "Agglomeration and the Location of Innovative Activity," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 14(2), pages 18-29, Summer.
    6. Li Fang, 2020. "Agglomeration and innovation: Selection or true effect?," Environment and Planning A, , vol. 52(2), pages 423-448, March.
    7. Mariagrazia Squicciarini & Heike Nachtigall, 2021. "Demand for AI skills in jobs: Evidence from online job postings," OECD Science, Technology and Industry Working Papers 2021/03, OECD Publishing.
    8. Rajeev K. Goel & James W. Saunoris & Xingyuan Zhang, 2016. "Intranational And International Knowledge Flows: Effects On The Formal And Informal Sectors," Contemporary Economic Policy, Western Economic Association International, vol. 34(2), pages 297-311, April.
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    1. Dahlke, Johannes & Beck, Mathias & Kinne, Jan & Lenz, David & Dehghan, Robert & Wörter, Martin & Ebersberger, Bernd, 2024. "Epidemic effects in the diffusion of emerging digital technologies: evidence from artificial intelligence adoption," Research Policy, Elsevier, vol. 53(2).

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    More about this item

    Keywords

    artificial intelligence (AI); public-sector program management; Small Business Innovation Research (SBIR); agglomeration; university research;
    All these keywords.

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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