Artificial Intelligence, Education, and Entrepreneurship
65 Pages Posted: 17 Sep 2019 Last revised: 5 Aug 2022
Date Written: July 31, 2022
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
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