Drivers of employment dynamics of AI innovators

Giacomo Damioli; Vincent Van Roy; Dániel Vértesy; Marco Vivarelli

doi:10.1016/j.techfore.2024.123249

Drivers of employment dynamics of AI innovators

Giacomo Damioli^*, Vincent Van Roy, Dániel Vértesy, Marco Vivarelli

^*Corresponding author for this work

UNU-MERIT Research and Training Institute

Research output: Contribution to journal › Article › Academic › peer-review

Abstract

Based on an analysis of companies developing artificial intelligence (AI) technologies, this study offers fresh evidence on the role of innovation as one of the drivers of employment growth. GMM-SYS estimates on a worldwide longitudinal dataset covering 4,184 firms that patented inventions involving AI technologies between 2000 and 2016 show a positive and significant impact of AI patent families on employment. The effect, presumably of product innovations, is small in magnitude and limited to service sectors and younger firms, which are at the forefront of the leaders of the AI revolution. We also detect some evidence of increasing returns, suggesting that innovative companies more focused on AI technologies are achieving larger impacts in terms of job creation.

Original language	English
Article number	123249
Journal	Technological Forecasting and Social Change
Volume	201
Early online date	1 Apr 2024
DOIs	https://doi.org/10.1016/j.techfore.2024.123249
Publication status	Published - Apr 2024

JEL classifications

o31 - Innovation and Invention: Processes and Incentives
j21 - Labor Force and Employment, Size, and Structure
m51 - "Personnel Economics: Firm Employment Decisions; Promotions"

Keywords

Artificial intelligence
Employment
Innovation
Job-creation
Patents
Technological change

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title = "Drivers of employment dynamics of AI innovators",

abstract = "Based on an analysis of companies developing artificial intelligence (AI) technologies, this study offers fresh evidence on the role of innovation as one of the drivers of employment growth. GMM-SYS estimates on a worldwide longitudinal dataset covering 4,184 firms that patented inventions involving AI technologies between 2000 and 2016 show a positive and significant impact of AI patent families on employment. The effect, presumably of product innovations, is small in magnitude and limited to service sectors and younger firms, which are at the forefront of the leaders of the AI revolution. We also detect some evidence of increasing returns, suggesting that innovative companies more focused on AI technologies are achieving larger impacts in terms of job creation.",

keywords = "Artificial intelligence, Employment, Innovation, Job-creation, Patents, Technological change",

author = "Giacomo Damioli and \{Van Roy\}, Vincent and D{\'a}niel V{\'e}rtesy and Marco Vivarelli",

note = "The views and opinions expressed are only those of the authors and do not necessarily reflect those of the European Union or the European Commission. Neither the European Union nor the European Commission can be held responsible for them.",

year = "2024",

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doi = "10.1016/j.techfore.2024.123249",

language = "English",

volume = "201",

journal = "Technological Forecasting and Social Change",

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T1 - Drivers of employment dynamics of AI innovators

AU - Damioli, Giacomo

AU - Van Roy, Vincent

AU - Vértesy, Dániel

AU - Vivarelli, Marco

N1 - The views and opinions expressed are only those of the authors and do not necessarily reflect those of the European Union or the European Commission. Neither the European Union nor the European Commission can be held responsible for them.

PY - 2024/4

Y1 - 2024/4

N2 - Based on an analysis of companies developing artificial intelligence (AI) technologies, this study offers fresh evidence on the role of innovation as one of the drivers of employment growth. GMM-SYS estimates on a worldwide longitudinal dataset covering 4,184 firms that patented inventions involving AI technologies between 2000 and 2016 show a positive and significant impact of AI patent families on employment. The effect, presumably of product innovations, is small in magnitude and limited to service sectors and younger firms, which are at the forefront of the leaders of the AI revolution. We also detect some evidence of increasing returns, suggesting that innovative companies more focused on AI technologies are achieving larger impacts in terms of job creation.

AB - Based on an analysis of companies developing artificial intelligence (AI) technologies, this study offers fresh evidence on the role of innovation as one of the drivers of employment growth. GMM-SYS estimates on a worldwide longitudinal dataset covering 4,184 firms that patented inventions involving AI technologies between 2000 and 2016 show a positive and significant impact of AI patent families on employment. The effect, presumably of product innovations, is small in magnitude and limited to service sectors and younger firms, which are at the forefront of the leaders of the AI revolution. We also detect some evidence of increasing returns, suggesting that innovative companies more focused on AI technologies are achieving larger impacts in terms of job creation.

KW - Artificial intelligence

KW - Employment

KW - Innovation

KW - Job-creation

KW - Patents

KW - Technological change

U2 - 10.1016/j.techfore.2024.123249

DO - 10.1016/j.techfore.2024.123249

M3 - Article

SN - 0040-1625

VL - 201

JO - Technological Forecasting and Social Change

JF - Technological Forecasting and Social Change

M1 - 123249

ER -

Drivers of employment dynamics of AI innovators

Abstract

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Keywords

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