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Robot Adoption and Product Innovation

Author

Listed:
  • Davide Antonioli

    (University of Ferrara)

  • Alberto Marzucchi

    (Gran Sasso Science Institute)

  • Francesco Rentocchini

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

  • Simone Vannuccini

    (Université Côte d'Azur, CNRS, GREDEG, France)

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, 2024. "Robot Adoption and Product Innovation," GREDEG Working Papers 2024-01, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    • Handle: RePEc:gre:wpaper:2024-01
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    Keywords

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