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Updated: Jun 29, 2025

The Innovation Arena: A Method for Comparing Innovative Problem-Solving Across Groups
Published on: May 13, 2022
Drivers of employment dynamics of AI innovators
Giacomo Damioli1,2,3, Vincent Van Roy4,5,6, Dániel Vértesy7,8
1European Commission, Joint Research Centre (JRC), Italy.
Abstract:
Based on an analysis of companies developing artificial intelligence (AI) technologies, this study offers fresh evidence on the role of innovation as one of the drivers of employment growth. GMM-SYS estimates on a worldwide longitudinal dataset covering 4,184 firms that patented inventions involving AI technologies between 2000 and 2016 show a positive and significant impact of AI patent families on employment. The effect, presumably of product innovations, is small in magnitude and limited to service sectors and younger firms, which are at the forefront of the leaders of the AI revolution. We also detect some evidence of increasing returns, suggesting that innovative companies more focused on AI technologies are achieving larger impacts in terms of job creation.
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