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Widening or closing the gap? The relationship between artificial intelligence, firm-level productivity and regional clusters

Nils Grashof and Alexander Kopka

No 2304, Bremen Papers on Economics & Innovation from University of Bremen, Faculty of Business Studies and Economics

Abstract: Artificial intelligence (AI) is seen as a key technology for economic growth. However, the impact of AI on firm productivity has been under researched – particularly through the lens of inequality and clusters. Based on a unique sample of German firms, filling at least one patent between 2013 and 2019, we find evidence for a positive influence of AI on firm productivity. Moreover, our analysis shows that while AI knowledge does not contribute to productivity divergences in general, it increases the productivity gap between laggard and all other firms. Nevertheless, this effect is reduced through the localisation in clusters.

Keywords: Artificial intelligence; Inequality; Productivity; Clusters; Patents; Firm-level (search for similar items in EconPapers)
JEL-codes: O18 O30 R10 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2023-11
New Economics Papers: this item is included in nep-ain, nep-bec, nep-cmp, nep-cse, nep-eff, nep-geo, nep-ino, nep-knm, nep-sbm, nep-tid and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:atv:wpaper:2304

DOI: 10.26092/elib/2663

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