The Strategy Digest
The Strategy Digest / Strategic Management Journal

Unlocking novel knowledge recombinations: The effect of artificial intelligence on inventive activity

Strategic Management Journal · Academic Paper · 12 Mar 2026 · Empirical research · Paywalled · Editor's rating: ★ Noted

AI unlocks novel recombinations of previously unconnected technologies, making it more than a tool: it changes the nature of inventive activity.

Summary

Analysing patenting by US firms from 2005 to 2023, the authors argue that AI acts as a shared layer whose predictive capabilities bridge otherwise disconnected technological domains. Inventions that build on AI show more novel recombination of knowledge than those that do not, so AI changes how knowledge is combined and not just how fast inventing happens. Patents capture only part of inventive activity, and the size of the effect depends on how novelty is measured.

Editor's opinion

AI is not only a productivity tool for invention but a bridge between technology domains that were previously unconnected, which makes it a source of new combinations. Firms that want to invent across fields, and those that compete with them, should treat AI capability as a way of reaching technology combinations that were hard to reach before.

Key concepts

AI · knowledge recombination · patents · inventive activity · technological bridging

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