Shocking Technology: What Happens When Firms Make Large IT Investments?
James Bessen and Cesare Righi
New research on the effects of large IT investments on employment and productivity.
Tag: Innovation
Shocks and Technology Adoption: Evidence from Electronic Payment Systems
Nicolas Crouzet, Apoorv Gupta, and Filippo Mezzanotti
A new study suggests that the Indian demonetization in 2016 spurred more rapid adoption of electronic payment systems.
Diffusing New Technology Without Dissipating Rents
James Bessen and Alessandro Nuvolari
A paper analyzing the diffusion of three technologies in the 19th century with policy implications for today.
The Competitive Landscape of AI Startups
James Kossuth and Robert Seamans in Harvard Business Review
Competition and Consumer Protection in the 21st Century
James Bessen testified before the FTC, October 24, 2018.
Cloud Computing Is Helping Smaller, Newer Firms Compete
Kristina McElheran cited in Harvard Business Review
Is Automation Labor-Displacing? Productivity Growth, Employment, and the Labor Share
David Autor and Anna Salomons
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.
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.
Upstream, Downstream: Diffusion and Impact of the Universal Product Code
Emek Basker and Timothy Simcoe
This paper presents an in-depth quantitative analysis of the diffusion and impacts of the Universal Product Code (UPC). The authors find evidence of two-sided network effects in the diffusion process, and that employment and trademark registrations increase following UPC adoption by manufacturers or wholesalers. The findings suggest that barcodes, scanning, and related technologies helped stimulate variety-enhancing product innovation and encourage the growth of international retail supply chains.