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SSRN
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.
Study at a glance
- Question: How does the departure of university AI professors affect students' creation of AI startups and fundraising?
- Setting and data: Universities, AI professors, and students, from 2004 to 2018.
- Method: Not stated in the abstract.
Why it matters
Universities experienced an unprecedented brain drain of AI professors from 2004 to 2018. Understanding these departures addresses how the loss of faculty influences students' AI knowledge, startup formation, and fundraising.
Key findings
- In universities between 2004 and 2018, the departure of AI professors was linked to students founding fewer AI startups and raising less funding.
- Student startup formation declined most noticeably when departing faculty were tenured, specialized in advanced AI learning, or taught at top-ranked universities.
- Faculty departures reduced founders' AI knowledge, which was an important factor for successful startup formation and fundraising.
Summary drafted with AI from the paper’s abstract and may contain errors. See the full paper for details.
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Study design
