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Demand-Driven Technical Change: Evidence from WFH Technologies

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  • Steven J. Davis
  • Nicholas Bloom
  • Mihai A. Codreanu

Abstract

COVID-19 brought a sharp, unanticipated increase in the usefulness and value of technologies that support work from home (WFH). To investigate how this shock influenced the direction of technical change, we examine the text in 5.6 million U.S. patent applications published from 2010 to 2026. The share of patent applications that advances technologies in support of WFH rose by about two thirds within three years after the pandemic struck and remains about 50% above pre-pandemic levels five years later. The lasting rise in the WFH share of new applications concentrates in telecommunications – especially video conferencing, speech recognition, and audio processing. It is driven overwhelmingly by US corporations rather than foreign assignees or universities. In short, we find evidence that a sudden, lasting rise in WFH redirected innovation to technologies that support it.

Suggested Citation

  • Steven J. Davis & Nicholas Bloom & Mihai A. Codreanu, 2026. "Demand-Driven Technical Change: Evidence from WFH Technologies," NBER Working Papers 35083, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:35083
    Note: EFG LS PR
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    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment
    • 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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