Pre-2020 Trends of AI Adoption and Comparative Advantage in European Countries

Abstract

Rapid advances in technology, especially AI applications, have contributed to economic transformation at both the microeconomic and macroeconomic levels. Given its substantial potential, AI adoption can become an important source of a country’s comparative advantage. This study examines whether European countries achieved a comparative advantage derived from AI applications during the period 2014–2019. Comparative advantage is assessed using the RSCA index, where positive values indicate its presence. The index is calculated based on the AI patent applications per one million people. The findings reveal that only a limited number of European countries possess a comparative advantage in AI, and that these countries are at varying levels of economic development. This suggests that a nation’s level of economic development is not a decisive factor for the emergence of innovative ideas driven by AI adoption.