AI News, Production and Trade of Knowledge artificial intelligence


Key takeaways: R&D and other activities that advance science and technology play a central role in a country’s economic growth and competitiveness.

Knowledge and technology intensity of an industry can be measured in different ways, including R&D performance, employment of high skilled workers, and patenting and innovation activities.

Accounting for domestic intermediate production, the United States has higher exports and a far smaller trade deficit on a value-added basis in computer, electronic, and optical products, which are part of high R&D intensive products.

Many KTI industries are either developing or utilizing AI technologies, including software publishing, IT services, and computer, electronic and optical products industries.

Both countries have AI initiatives that include the following stated goals: increase public funding of AI R&D, develop and improve the skills necessary at the workplace to effectively utilize AI, and promote collaboration between the private sector, universities, and government.

Company adoption of AI technologies, measured by AI being embedded in at least one business unit of the company, is occurring across the world, including North America, Europe, Asia-Pacific, Middle East, and India and other developing countries.


The commercialization of artificial intelligence (AI) is occurring in four separate areas: Internet, business, perception, and autonomous (Lee 2018).

For example, Netflix recommends movies and TV shows to watch based on a viewer’s history, and Facebook targets advertisements to users based on their activity, including their posts news and interaction with other users.

The fourth area, autonomous AI, includes autonomous vehicles and drones, intelligent robots, and other devices and hardware that will replace or supplement human labor, such as truck drivers.

The strategy of these large Chinese and U.S. corporations has been to construct privately controlled computing networks that distribute AI technology with wide applications across the economy, similar to utilities distributing energy across power grids (Lee 2018:83).

For example, Amazon is selling AI services, including natural language processing, speech synthesis, image analysis, and video recognition, with the goal of serving large- and small-time developers that want AI without upfront costs (CB Insights 2018:27).

Alibaba is working with the city of Hangzhou to optimize traffic flows and alert emergency services to traffic accidents using advanced object recognition and predictive transit algorithms (Lee 2018:94).

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