Artificial intelligence as a method of invention

Guillermo Arenas Díaz (), Mariacristina Piva () and Marco Vivarelli ()
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Guillermo Arenas Díaz: Dipartimento di Politica Economica, DISCE, Università Cattolica del Sacro Cuore, Milano, Italy
Mariacristina Piva: Dipartimento di Politica Economica, DISCE, Università Cattolica del Sacro Cuore, Piacenza, Italy

No dipe0052, DISCE - Working Papers del Dipartimento di Politica Economica from Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE)

Abstract: This study investigates the relationship between Artificial Intelligence (AI) and innovation inputs in Spanish manufacturing firms. While AI is increasingly recognized as a driver of productivity and economic growth, its role in shaping firms’ innovation strategies remains underexplored. Using firm-level data, our analysis focuses on whether AI complements innovation inputs - specifically R&D and Embodied Technological Change (ETC) - and whether AI can be considered as a Method of Invention, able to trigger subsequent innovation investments. Results show a positive association between AI adoption and both internal R&D and ETC, in a static and a dynamic framework. Furtheremore, empirical evidence also highlights heterogeneity, with important peculiarities affecting large vs small firms and high-tech vs low-tech companies. These findings suggest that AI may act as both a complement and a catalyst, depending on firm characteristics.

Keywords: Artificial Intelligence; Method of Invention; R&D; Innovation Inputs; Innovative Complementarities (search for similar items in EconPapers)
JEL-codes: O31 O32 (search for similar items in EconPapers)
Pages: 31
Date: 2025-11
New Economics Papers: this item is included in nep-ain and nep-sbm
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Working Paper: Artificial intelligence as a method of invention (2025)
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