Empirical research of AI markets proves it stagnates overall innovation AND causes offshoring.

C. The Patent System's Enthusiasm for Artificial Intelligence

The last section illustrated that there is much to be excited about concerning AI. The USPTO's interest in artificial intelligence signals a critical moment for U.S. innovation. Evidence suggests that the patent system is becoming less accessible to small businesses, women, and minorities. 230 Research from other domains reveals that artificial intelligence, when applied to a problem with blind technological optimism, furthers disparities in power. 231 If the U.S. ignores these trends, then it risks further alienating small businesses and innovators that have been integral to the story of U.S. innovation. This section describes the problem in further detail.

1. Underrepresented Innovators and the Patent System

In the last several decades patent activity has become concentrated among certain groups. Large corporations patent more than small businesses. 232Men patent more than women. 233White Americans patent more than other minority groups. 234

Recently, researchers have begun to ask why? For small businesses, one of the most common rationales given is that they lack the resources to successfully acquire patents. 235A common rationale given for low female and minority participation is that there is a small number of women and minorities in the STEM fields. 236It is helpful to take a closer look at some of the data and question whether lack of resources and the STEM pipeline tell the complete story. They do not.

2. Patent Concentration

Patent activity is coalescing around large corporations. 237 One rationale for this trend is that large firms are better suited to devote significant resources to research and development of new technologies. 238 The same corporations also have significant resources that they can devote to marketing and commercialization. 239 On one hand, this trend follows a natural evolution of innovation in the United States.

On the other hand, small businesses and independent inventors have certain advantages that are not available to large firms. Small businesses are nimbler and in many cases can take more risk than larger firms. 240 In addition, small businesses are more likely to be engaged in endeavors that have not yet drawn the interest of larger corporations. 241 But, despite these advantages, small business patenting activity seems to be stagnating. 242 This trend is alarming because many of the most significant innovations in the last several decades have been patented by independent inventors or small businesses. 243 Less patent activity by small businesses could lead to less innovation.

Another notable trend is that the large businesses that are involved in patenting are increasingly foreign corporations. 244 From one perspective, this signals that the U.S. is an important country for securing patent rights. But the trend also suggests that innovative activity is moving out of the U.S. When innovation leaves, important indicators of a healthy economy such as jobs, investment and innovators themselves follow.