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The latest KOF research shows that AI technology is being introduced in relatively closed groups, similar to exclusive clubs. This could lead to a concentration of relevant AI know-how, making it more difficult for this key technology to spread and increasing dependence on a small number of technology providers. This in turn can make the economic performance of different regions less equal. Policymakers should push to overcome excessive cluster effects.

The development of new digital technologies is increasingly dependent on international knowledge. In the recent past this trend has led to political concerns about dependence on foreign knowledge suppliers. A study by KOF, which uses a global patent dataset from 1980 to 2015, emphasises the importance of international knowledge networks for technological progress.

This article is a collaboration between man and machine. We conducted an interview with the ChatGPT voice software on economics, business cycle research and politics. KOF innovation researcher Mathias Beck and KOF co-director Hans Gersbach rank the quality of ChatGPT’s responses and its potential below.

The proportion of firms that use various IT security technologies and have appropriate strategies and individuals responsible for cyber security has risen sharply over time. This trend is accompanied by a decrease in the percentage of firms that have security issues. The growing protection of digital infrastructure may therefore pay off in the form of fewer cyber attacks.

The spread of new digital technologies throughout the Swiss economy continues to increase. Robots, big data and artificial intelligence are being used not only to make internal processes more efficient, but also to develop and sell new products. This dual function keeps the Swiss economy competitive in the face of strong international competition.

New technologies are fundamentally changing the demand for labour in Switzerland and other countries. Is the Swiss workforce about to be replaced by robots, artificial intelligence and other digital technologies?

Martin Wörter and Mathias Beck are examining the digital transformation as part of a research project funded by the National Research Programme (NRP). In this interview the two innovation economists explain why the coronavirus pandemic has accelerated computerisation and why Europe is still lagging behind the United States in terms of technology.

High-resolution aerial photographs – evaluated using machine-learning techniques – can be used to create success indicators for construction projects in Switzerland. Until now it has not been possible to measure whether planned construction projects have been implemented or not. The initial results of a KOF pilot project indicate that many construction projects have remained unfinished – especially in the wake of the 2012 second-home initiative.

The coronavirus pandemic has clearly left its mark on Switzerland’s innovation landscape. More than a quarter of the firms surveyed by KOF have had to adapt their innovation processes significantly or even very significantly owing to the COVID-19 crisis. SMEs, start-ups and multinational corporations have been hit particularly hard. Just under half of these companies report that COVID-19 has meant a reduction in R&D and innovation investment and a decline in innovation collaborations.

The seven major Swiss regions differ significantly in some cases with regard to production factors but not in terms of the results of the innovation process. The differences in input factors appear to be primarily due to structural factors. It is small firms in the construction and service sectors that cause these differences. At the same time, these types of firms make a smaller contribution to the results of the innovation process, which reduces the regional differences in innovation success.

Companies usually hope that investing in digital technology will increase their competitiveness. However, there is no evidence of any direct correlation here. As a KOF study shows, innovation is needed in order to actually raise productivity through IT investment.