Artificial Intelligence, Education, and Entrepreneurship

65 Pages Posted: 17 Sep 2019 Last revised: 5 Aug 2022

See all articles by Michael Gofman

Michael Gofman

Hebrew University of Jerusalem - Jerusalem School of Business Administration; Simon Business School

Zhao Jin

Cheung Kong Graduate School of Business

Date Written: July 31, 2022

Abstract

We document an unprecedented brain drain of AI professors from universities from 2004 to 2018. We find that students from the affected universities establish fewer AI startups and raise less funding. The effect is significant for an AI brain drain of tenured professors, professors from top universities, and deep learning professors. Additional evidence suggests that unobserved city- and university-level shocks are unlikely to drive our results. We consider several economic channels for the findings. The most consistent explanation is that professors' departures reduce startup founders' AI knowledge, which we find is an important factor for successful startup formation and fundraising.

Keywords: Artificial intelligence, entrepreneurial finance, human capital, innovation, education, deep learning

JEL Classification: L26, O33, O31, I23, J24

Suggested Citation

Gofman, Michael and Jin, Zhao, Artificial Intelligence, Education, and Entrepreneurship (July 31, 2022). Journal of Finance, Forthcoming, Available at SSRN: https://ssrn.com/abstract=3449440 or http://dx.doi.org/10.2139/ssrn.3449440

Michael Gofman (Contact Author)

Hebrew University of Jerusalem - Jerusalem School of Business Administration ( email )

Mount Scopus
Jerusalem, 91905
Israel

HOME PAGE: http://gofman.info

Simon Business School ( email )

Rochester, NY 14627
United States

HOME PAGE: http://gofman.info

Zhao Jin

Cheung Kong Graduate School of Business ( email )

1 East Chang'an Ave.
Beijing, Beijing 100005
China

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
919
Abstract Views
4,492
rank
38,152
PlumX Metrics