Tag: Innovation

The Impact of Artificial Intelligence on Innovation

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.

Value Migration and Industry 4.0: Theory, Field Evidence, and Propositions

Susan Helper, Raphael Martins, Robert Seamans

This paper offers several predictions about how Industry 4.0 – the coordinated use of robots, sensors, AI, and other digitally-enabled technologies in manufacturing – will affect which firms and occupations capture value in manufacturing. Using in-depth interviews with manufacturers that are part of the automotive value chain, the authors find that value migration within firms likely affects whether and how value migration occurs across firms.