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Is Distance from Innovation a Barrier to the Adoption of Artificial Intelligence?

Author

Listed:
  • Hunt, Jennifer

    (Rutgers University)

  • Cockburn, Iain

    (Boston University)

  • Bessen, James

    (Boston University)

Abstract

Using our own data on Artificial Intelligence publications merged with Burning Glass vacancy data for 2007-2019, we investigate whether online vacancies for jobs requiring AI skills grow more slowly in U.S. locations farther from pre-2007 AI innovation hotspots. We find that a commuting zone which is an additional 200km (125 miles) from the closest AI hotspot has 17% lower growth in AI jobs' share of vacancies. This is driven by distance from AI papers rather than AI patents. Distance reduces growth in AI research jobs as well as in jobs adapting AI to new industries, as evidenced by strong effects for computer and mathematical researchers, developers of software applications, and the finance and insurance industry. 20% of the effect is explained by the presence of state borders between some commuting zones and their closest hotspot. This could reflect state borders impeding migration and thus flows of tacit knowledge. Distance does not capture difficulty of in-person or remote collaboration nor knowledge and personnel flows within multi-establishment firms hiring in computer occupations.

Suggested Citation

  • Hunt, Jennifer & Cockburn, Iain & Bessen, James, 2024. "Is Distance from Innovation a Barrier to the Adoption of Artificial Intelligence?," IZA Discussion Papers 17325, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp17325
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    More about this item

    Keywords

    Artificial Intelligence; technology adoption and diffusion;

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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