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7. Big technology is slowing innovation: The great IT revolution is no longer promoting economic dynamism. It's preventing it

Author

Bessen, James

Subjects
Technological innovations -- Forecasts and trends -- Economic aspects, High technology industry -- Forecasts and trends -- Economic aspects -- Innovations, Voice recognition -- Forecasts and trends -- Innovations -- Economic aspects, Industrial research -- Forecasts and trends -- Economic aspects -- United States, Research and development, Market trend/market analysis, Business, Computers and office automation industries, High technology industry
Abstract

In 2005, years before Apple's I Siri and Amazon's Alexa came on the scene, two startups--ScanSoft and Nuance Communications--merged to pursue a burgeoning opportunity in speech recognition. The new company [...]

Published
2022

9. How Software Stifles Competition and Innovation: Factoring the slowing up of startups.

Author

Bessen, James

Subjects
*NEW business enterprises, *COMPUTER software development, *COMPUTING platforms, *TECHNOLOGICAL innovations, *ECONOMIC competition, *ECONOMIC expansion
Abstract

The article discusses the slowing growth of startup companies and the role played by software. The author argues that larger companies have developed software platforms that deliver important consumer benefits, but that access to such platforms is limited and stifles competition. This leads to a poor market dynamic and slow economic growth.

Published
2023
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12. Competing for Talent: Large Firms and Startup Growth.

Author

Bessen, James, Poege, Felix, and Röttger, Ronja

Abstract

This paper explores the impact of large firms' hiring in local labor markets on the salaries offered by startups and on startup growth and performance. We analyze firm data matched to help-wanted ads and find strong evidence of "crowding out." A standard deviation increase in the share of ads posted by large firms raises startup pay offers by 5-10% for critical managerial, STEM, and sales jobs, and it reduces expected startup growth by 36%. Crowding is diminished by employee mobility and by spillovers to startups in closely related businesses. It is increased by big firm markups, which may have a large effect on startups. Results are robust to a shift-share instrumental variable strategy. Crowding has important implications for firm strategy, regional policy, and for understanding the slowdown in the aggregate growth of startup firms. [ABSTRACT FROM AUTHOR]

Published
2024
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25. Diffusing new technology without dissipating rents: some historical case studies of knowledge sharing.

Author

Bessen, James and Nuvolari, Alessandro

Subjects
INFORMATION sharing, ENERGY dissipation, TECHNOLOGICAL innovations, INDUSTRIAL productivity, PRICE regulation, ECONOMIC development, INNOVATION adoption
Abstract

The diffusion of innovations is supposed to dissipate inventors' rents. Yet in many documented cases, inventors freely shared knowledge with their competitors. Using a model and case studies, this article explores why sharing did not eliminate inventors' incentives. Each new technology coexisted with an alternative for one or more decades. This allowed inventors to earn rents while sharing knowledge, attaining major productivity gains. The technology diffusion literature suggests that such circumstances are common during the early stages of a new technology. [ABSTRACT FROM AUTHOR]

Published
2019
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27. Abstracts of Papers Presented at the Annual Meeting

Author

Wright, Robert, Hilt, Eric, Holt, Daniel, Yuchtman, Noam, Cantoni, Davide, Go, Sun, Carter, Linda, Dye, Alan, Walsh, Lorena, Nafziger, Steven, Bakker, Gerben, Burhop, Carsten, Phillips, William, Yuru, Wang, Li, Zhang, Ma, Debin, Nunn, Nathan, Wantchekon, Leonard, Whatley, Warren, Petit-Konczyk, Muriel, Parent, Antoine, Hatton, Timothy, Martin, Richard, Treber, Jaret, Thomasson, Melissa, Murray, John, Wallis, Patrick, Mitch, David, Main, Gloria, Ferrie, Joseph, Rolf, Karen, Engerman, Stanley, Camps, Enriqueta, Brown, John, Wright, Gavin, Levenstein, Margaret, Lamoreaux, Naomi, Geiger, Mark, Alston, Julian, Pardey, Philip, Simpson, James, Alston, Lee, Acemoglu, Daron, Mokyr, Joel, Hamilton, Gary, Kao, Cheng-Shu, Masayuki, Tanimoto, Lin, Wen-Kai, Clark, Gregory, Cummins, Neil, Wegge, Simone, Esteves, Rui, Khoudour-Castéras, David, Field, Alexander, Greenstein, Shane, Bresnahan, Timothy, Henderson, Rebecca, Bessen, James, O'Rourke, Kevin, Lehmann, Sibylle, Bogart, Dan, and Ploeckl, Florian

Published
2009

34. Toward understanding the impact of artificial intelligence on labor

Author

Massachusetts Institute of Technology. Media Laboratory, Massachusetts Institute of Technology. Department of Economics, Sloan School of Management, Massachusetts Institute of Technology. Institute for Data, Systems, and Society, Frank, Morgan R, Autor, David, Bessen, James E, Brynjolfsson, Erik, Cebrian, Manuel, Deming, David J, Feldman, Maryann, Groh, Matthew, Lobo, José, Moro, Esteban, Wang, Dashun, Youn, Hyejin, Rahwan, Iyad, Massachusetts Institute of Technology. Media Laboratory, Massachusetts Institute of Technology. Department of Economics, Sloan School of Management, Massachusetts Institute of Technology. Institute for Data, Systems, and Society, Frank, Morgan R, Autor, David, Bessen, James E, Brynjolfsson, Erik, Cebrian, Manuel, Deming, David J, Feldman, Maryann, Groh, Matthew, Lobo, José, Moro, Esteban, Wang, Dashun, Youn, Hyejin, and Rahwan, Iyad

Abstract

© 2019 National Academy of Sciences. All Rights Reserved. Rapid advances in artificial intelligence (AI) and automation technologies have the potential to significantly disrupt labor markets. While AI and automation can augment the productivity of some workers, they can replace the work done by others and will likely transform almost all occupations at least to some degree. Rising automation is happening in a period of growing economic inequality, raising fears of mass technological unemployment and a renewed call for policy efforts to address the consequences of technological change. In this paper we discuss the barriers that inhibit scientists from measuring the effects of AI and automation on the future of work. These barriers include the lack of high-quality data about the nature of work (e.g., the dynamic requirements of occupations), lack of empirically informed models of key microlevel processes (e.g., skill substitution and human–machine complementarity), and insufficient understanding of how cognitive technologies interact with broader economic dynamics and institutional mechanisms (e.g., urban migration and international trade policy). Overcoming these barriers requires improvements in the longitudinal and spatial resolution of data, as well as refinements to data on workplace skills. These improvements will enable multidisciplinary research to quantitatively monitor and predict the complex evolution of work in tandem with technological progress. Finally, given the fundamental uncertainty in predicting technological change, we recommend developing a decision framework that focuses on resilience to unexpected scenarios in addition to general equilibrium behavior.

Published
2021

35. The private and social costs of patent trolls: do nonpracticing entities benefit society by facilitating markets for technology?

Author

Bessen, James, Ford, Jennifer, and Meurer, Michael J.

Subjects
Computer services industry -- Laws, regulations and rules, Patent infringement -- Laws, regulations and rules, Government regulation, Computer services industry, Business, Government, Law
Abstract

In 2010, firms operating in the United States found themselves in lawsuits initiated by nonpracticing entities (NPEs) more than 2,600 times. That is a five-fold increase over 2004. Is this [...]

Published
2011

37. Of patents and property: with some important exceptions, empirical evidence suggests patent protection reduces innovation

Author

Bessen, James and Meurer, Michael J.

Subjects
Patent law -- Evaluation, Intellectual property law -- Evaluation, Business, Government, Law, Evaluation
Abstract

There is property, and then there is property. Scholars hotly debate whether intellectual property is truly property and which lessons learned about property rights in land should be applied to [...]

Published
2008

38. Ethics and AI Startups

Author

Bessen, James E., primary, Impink, Stephen Michael, additional, Reichensperger, Lydia, additional, and Seamans, Robert, additional

Published
2021
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50. The software patent experiment *

Author

Hunt, Robert and Bessen, James

Subjects
United States. Patent and Trademark Office -- Services -- Standards, Software -- Licensing, certification and accreditation -- Standards -- Services, Patents -- Standards -- Analysis, Business, general, Business, Patent/copyright issue, Software quality, Standards, Analysis, Services, Licensing, certification and accreditation
Abstract

Over the past two decades, the scope of technologies that can be patented has been expanded to include many items previously thought unsuitable for patenting, for example, computer software. Today, [...]

Published
2004

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