TY - JOUR
T1 - Artificial intelligence based technologies and economic growth in a creative region
AU - Batabyal, Amitrajeet A.
AU - Kourtit, Karima
AU - Nijkamp, Peter
N1 - Publisher Copyright:
© 2024 Informa UK Limited, trading as Taylor & Francis Group.
PY - 2024/7/5
Y1 - 2024/7/5
N2 - We analyze economic growth in a stylized, high-tech region (Formula presented.) with two key features. First, the residents of this region are high-tech because they possess skills. In the language of Richard Florida, these residents comprise the region’s creative class and they possess creative capital. Second, the region is high-tech because it uses an artificial intelligence (AI)-based technology and we model the use of this technology. In this setting, we first derive expressions for three growth metrics. Second, we use these metrics to show that the economy of (Formula presented.) converges to a balanced growth path (BGP). Third, we compute the growth rate of output per effective creative capital unit on this BGP. Fourth, we study how heterogeneity in initial conditions influences outcomes on the BGP by introducing a second high-tech region (Formula presented.) into the analysis. At time (Formula presented.) two key savings rates in (Formula presented.) are twice as large as in (Formula presented.) We compute the ratio of the BGP value of income per effective creative capital unit in (Formula presented.) to its value in (Formula presented.) Finally, we compute the ratio of the BGP value of skills per effective creative capital unit in (Formula presented.) to its value in (Formula presented.).
AB - We analyze economic growth in a stylized, high-tech region (Formula presented.) with two key features. First, the residents of this region are high-tech because they possess skills. In the language of Richard Florida, these residents comprise the region’s creative class and they possess creative capital. Second, the region is high-tech because it uses an artificial intelligence (AI)-based technology and we model the use of this technology. In this setting, we first derive expressions for three growth metrics. Second, we use these metrics to show that the economy of (Formula presented.) converges to a balanced growth path (BGP). Third, we compute the growth rate of output per effective creative capital unit on this BGP. Fourth, we study how heterogeneity in initial conditions influences outcomes on the BGP by introducing a second high-tech region (Formula presented.) into the analysis. At time (Formula presented.) two key savings rates in (Formula presented.) are twice as large as in (Formula presented.) We compute the ratio of the BGP value of income per effective creative capital unit in (Formula presented.) to its value in (Formula presented.) Finally, we compute the ratio of the BGP value of skills per effective creative capital unit in (Formula presented.) to its value in (Formula presented.).
KW - Artificial intelligence
KW - creative capital
KW - regional economic growth
KW - skills
U2 - 10.1080/10438599.2024.2374273
DO - 10.1080/10438599.2024.2374273
M3 - Article
AN - SCOPUS:85197546520
SN - 1043-8599
JO - Economics of Innovation and New Technology
JF - Economics of Innovation and New Technology
ER -