TY  - RPRT
        AU  - Díaz, Guillermo Arenas
AU  - Piva, Mariacristina
AU  - Vivarelli, Marco
        TI  - Artificial Intelligence as a Complement to Other Innovation Activities and as a Method of Invention
        PY  - 2025/Oct/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 18175
        UR  - https://www.iza.org/index.php/publications/dp18175
        AB  - 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.
        KW  - Artificial Intelligence
KW  - method of invention
KW  - R&D
KW  - innovation inputs
KW  - innovative complementarities
        ER  -