Working Paper #2025-022
Artificial intelligence as a complement to other innovation activities and as a method of invention
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
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- Artificial Intelligence
- Method of Invention
- R&D
- Innovation Inputs
- Innovative Complementarities
- JEL codes
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- O31
- O32
Cite this as
APA 7th ed.Arenas Díaz, G., Piva, M., & Vivarelli, M. (2025). Artificial intelligence as a complement to other innovation activities and as a method of invention (UNU-MERIT Working Paper No. 2025-022). UNU-MERIT. https://doi.org/10.53330/AEJJ9309