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Robot Adoption and Innovation Activities (last revised: December 2023)

Author

Listed:
  • Davide Antonioli

    (University of Ferrara)

  • Alberto Marzucchi

    (Gran Sasso Science Institute)

  • Francesco Rentocchini

    (European Commission, Joint Research Centre (JRC), Seville, Spain; Department of Economics Management and Quantitative Methods (DEMM), University of Milan)

  • Simone Vannuccini

    (GREDEG, CNRS, Université Côte d’Azur)

Abstract

We investigate the unexplored relationship between robot technology adoption and product innovation. We exploit Spanish firm-level data on robot adoption and use a staggered timing difference-in-differences, supported by an instrumental variable approach. Instead of an enabling effect, we find a negative association between robot adoption and the probability to introduce product innovations, as well as their number. The result is particularly significant for larger, established, and non-high-tech firms. In line with industry evolution models, we rationalise and interpret the findings suggesting that a key mechanism at work in the robotisation-innovation nexus are diseconomies of scope fuelled by capacity-increasing investments. We also discuss whether industrial robots in our data feature enabling capabilities at all. Our results have important implications for understanding the role of robots in firms’ operations and strategies, as well as for policy design.

Suggested Citation

  • Davide Antonioli & Alberto Marzucchi & Francesco Rentocchini & Simone Vannuccini, 2022. "Robot Adoption and Innovation Activities (last revised: December 2023)," Munich Papers in Political Economy 21, Munich School of Politics and Public Policy and the School of Management at the Technical University of Munich.
    • Handle: RePEc:aiw:wpaper:21
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    More about this item

    Keywords

    robots; automation; product innovation; diseconomies of scope; Spain;
    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

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