While many technological innovations replace workers with machines, what effect does that have on overall employment and productivity? This paper explores automation’s impact on total employment and aggregate demand.
Iain Cockburn, Rebecca Henderson, and Scott Stern.
Can artificial intelligence serve as a new general-purpose “method of invention” that can reshape the nature of the innovation process and the organization of R&D? Research suggests that this may lead to a significant substitution away from more routinized labor-intensive research towards research that takes advantage of the interplay between passively generated large datasets and enhanced prediction algorithms. The authors suggest that policies which encourage transparency and sharing of core datasets across both public and private actors may be critical tools for stimulating research productivity and innovation-oriented competition.