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Evaluating Internal and External Knowledge Sources in Adopting Artificial Intelligence

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Artificial intelligence has emerged as a key technology that individuals and businesses utilize to grow and innovate with the paucity of understanding what drives its adoption. This study examines how investments in internal R&D and Information and Communication Technologies (ICT), combined with open innovation through knowledge spillovers, R&D acquisitions, and collaborations with external partners, can encourage firms to embrace AI. Drawing from the Technology – Organizational and Environmental (TOE) context framework and integrating it with the recombinant knowledge perspective, we assess the interplay between a firm's organizational and technological contexts, as well as the impact of knowledge spillovers and collaborations. This assessment is based on micro-level data from UK firms spanning 2004-2020. Our findings highlight the distinct influence of investments in knowledge and capabilities, in conjunction with collaborative engagements on a firm's propensity to adopt AI.

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  • D’Amico, Elettra & Belitski, Maksim & Colombelli, Alessandra, 2023. "Evaluating Internal and External Knowledge Sources in Adopting Artificial Intelligence," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 202303, University of Turin.
    • Handle: RePEc:uto:labeco:202303
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