Template-type: ReDif-Paper 1.0
Author-Name: Arenas Díaz, Guillermo
Author-Name: Piva, Mariacristina
Author-Name: Vivarelli, Marco
Title: Artificial intelligence as a complement to other innovation activities and as a method of invention
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. Furthermore, 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.
Classification-JEL: o31,o32
Series: UNU-MERIT Working Papers
Creation-Date: 20251003
Number: 2025-022
File-URL: https://cris.maastrichtuniversity.nl/ws/files/278726133/wp2025-022.pdf
File-Format: application/pdf
File-Size: 905111
Handle: Repec:unm:unumer:2025022
DOI: 10.53330/AEJJ9309