Artificial Intelligence and Technological Innovation: Evidence from China’s Strategic Emerging Industries

Daojun Li (), Haiqin Wang and Juan Wang
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Daojun Li: School of Management, Nanjing University of Posts and Telecommunications, Nanjing 210003, China
Haiqin Wang: School of Management, Nanjing University of Posts and Telecommunications, Nanjing 210003, China
Juan Wang: School of Management, Nanjing University of Posts and Telecommunications, Nanjing 210003, China

Sustainability, 2024, vol. 16, issue 16, 1-24

Abstract: Artificial intelligence (AI) is the driving force for the leapfrog development of science and technology, the optimization and upgrading of industry, as well as the overall leap in productivity. Using panel data of strategic emerging firms in Chinese A-Share Listed companies from 2012 to 2022, this study empirically examines the impact of AI on technological innovation through a two-way fixed-effects model. The study discovered that technological innovation capability can be greatly enhanced by the degree of AI present in strategic emerging industry businesses. This conclusion remains valid following a series of robustness tests. The mechanism study demonstrates how the degree of AI increases businesses’ capacity for technological innovation by lowering funding constraints and boosting R&D investment. According to heterogeneity analysis, AI has varying empowering effects on different industries within strategic emerging industries. Its strongest empowering effect is observed in the western region, with the central and eastern regions seeing the weakest effects. Additionally, the promotion effect of AI is greater for state-owned enterprises than for non-state-owned enterprises. To better play the role of AI in encouraging the technical innovation of firms in strategic emerging industries, it is required to establish dedicated funds, create an AI technology innovation platform, and develop differentiated regulations.

Keywords: artificial intelligence; technological innovation; strategic emerging industries; financing constraints; R&D investment (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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