Artificial Intelligence-Based Development Strategy in Dependent Market Economies - Any Room amidst Big Power Rivalry?

Abstract

This paper investigates whether the activities of start-ups specialising in artificial intelligence (AI)-powered solutions could contribute to upgrading in dependent market economies. Mapping the ecosystem of Hungarian AI-solution providers, collecting, and analysing data of their solutions, activities, and performance, we identify the main mechanisms of AI-driven upgrading. We argue that AI-solution providers induce productivity and resource efficiency improvement at technology adopters by enabling process upgrading. By selling their services to the local subsidiaries of global companies, they intensify the local backward linkages of these companies. Increased local embeddedness of subsidiaries is an important manifestation of economic upgrading. Additionally, AIsolution providers diversify the drivers of growth. In dependent market economies, where export-oriented manufacturing activities controlled by efficiency-seeking foreign investors used to be the main (unique) growth engine, the activities of domestic-owned AI solution providers represent a new driver of growth: technology-oriented entrepreneurship. We found, however, that the economic impact of Hungarian AI-oriented ventures is limited, no matter how innovative their solutions are. Managerial implications include the indispensability of devising an adequate business development strategy and a value capture strategy. Without adequate entrepreneurial skills, and without being visible on the global stage of 'AI-start-ups to watch', the development prospects of even the most innovative ventures are limited. A key policy implication for supporting the scaling up of AI start-ups by promoting the adoption of AI-powered solutions and stimulating venture capital financing promises good return on public investments.

If Technology Has Arrived Everywhere, Why Has Income Diverged?

“…Additionally, total demand for services associated with a vintage (v, τ ) is equal to its supply, (7). The output associated with a technology Y τ, t equals its demand from the final good producer.…”

“…O'Rourke, Rahman, and Taylor 2011). 7 Our focus differs from these studies in that we measure the relevant dimensions of technology diffusion directly from diffusion curves and analyze the implications for productivity growth. Unlike these studies we do not intend to explain why the use of technology diverged between rich and poor countries.…”

“…He predicts either no growth or a strong convergence. Instead, our model has more nuanced predictions and captures well the entire world income distribution 7 Galor and Mountford (2006). develop a model where trade affects asymmetrically fertility decisions in developed and developing economies, due to different initial endowments of human capital, leading to different evolutions of productivity growth.…”

The Significance of Controlling in Enterprises in Emerging Economies

“…The limitation of these approaches is that they are designed regardless of the size of the enterprise. After the analysis of several approaches, as well as based on our own empirical research in practice (Sedliačiková et al, 2019), the concept of controlling structure for small and medium-sized enterprises (SMEs) was proposed (Hajdúchová et al, 2017;Šatanová & Sedliačiková, 2014;Szalavetz, 2019). In terms of the dimension of time, it is possible to divide controlling into strategic and operational.…”

Lépések a kognitív automatizáció felé. Digitális átalakulás egy magyarországi üzleti szolgáltatóközpontban

“…Ez a fokozott figyelem nem csupán a szervezetek különböző fejlesztési projektjeiben figyelhető meg: a témával foglalkozó publikációk növekvő számában tetten érhető a tudományos közösség érdeklődése is. Hazánkban is egyre több folyóiratcikk és kutatási jelentés jelenik meg a digitális technológiák különböző szektorokra gyakorolt hatásairól (Agárdi, 2018;Demeter, Losonci, Nagy, & Horváth, 2019;Fehér, 2018;Futó, 2018;Nagy, 2019;Rekettye, 2020;Szalavetz, 2018Szalavetz, , 2019bSzalavetz, , 2019a.…”