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Artificial intelligence as a method of invention

Author

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  • Arenas Díaz, Guillermo
  • Piva, Mariacristina
  • Vivarelli, Marco

Abstract

This study investigates the relationship between Artificial Intelligence (AI) and innovation inputs in Spanish manufacturing firms. While AI is increasingly recognized as a driver of productivity and economic growth, its role in shaping firms' innovation strategies remains underexplored. Using firm-level data, our analysis focuses on whether AI complements innovation inputs - specifically R&D and Embodied Technological Change (ETC) - and whether AI can be considered as a Method of Invention, able to trigger subsequent innovation investments. Results show a positive association between AI adoption and both internal R&D and ETC, in a static and a dynamic framework. Furtheremore, empirical evidence also highlights heterogeneity, with important peculiarities affecting large vs small firms and high-tech vs low-tech companies. These findings suggest that AI may act as both a complement and a catalyst, depending on firm characteristics.

Suggested Citation

  • Arenas Díaz, Guillermo & Piva, Mariacristina & Vivarelli, Marco, 2025. "Artificial intelligence as a method of invention," GLO Discussion Paper Series 1676, Global Labor Organization (GLO).
    • Handle: RePEc:zbw:glodps:1676
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    References listed on IDEAS

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    1. Xulia González & Jordi Jaumandreu & Consuelo Pazo, 2005. "Barriers to Innovation and Subsidy Effectiveness," RAND Journal of Economics, The RAND Corporation, vol. 36(4), pages 930-949, Winter.
    2. Ajay Agrawal & Joshua Gans & Avi Goldfarb, 2019. "The Economics of Artificial Intelligence: An Agenda," NBER Books, National Bureau of Economic Research, Inc, number agra-1.
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    4. Giacomo Damioli & Vincent Van Roy & Daniel Vertesy, 2021. "The impact of artificial intelligence on labor productivity," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 11(1), pages 1-25, March.
    5. Ajay Agrawal & Joshua S. Gans & Avi Goldfarb, 2024. "Artificial intelligence adoption and system‐wide change," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 33(2), pages 327-337, March.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

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    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
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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