Are digital technologies killing future innovation? The curvilinear relationship between digital technologies and firm’s intellectual property

Purpose – The study aims to investigate the interplay among digital technologies, intellectual capital and
innovation. Thus far, there have been scant research on such intricate bundle of interactions. Also, the findings
of previous studies were rather inconclusive, because conflicting results emerged over time. Building on the
existence of heterogeneous evidences, this study solved the detected criticism by suggesting a curvilinear
relationship among digital technologies, digital skills of human capital and intellectual property. Specifically,
we argue that the relationship between digital technologies and intellectual property is inverted u-shaped.
Design/methodology/approach – Hypotheses are tested by applying a generalized linear model (GLM)
regression analysis and a quadratic model for non-linear regression. The study analysed a large-scale sample of
micro-data drawn from Eurostat. Such sample embraces the population of firms operating in all European
member states.
Findings – Overall, the results of the study confirm that digital technologies are curvilinearly related to
intellectual property. Precisely, the curve is inverted u-shaped. Notably, results show that digital skills only
matter when employees have very demanding duties to accomplish. In all other cases, digital skills do not affect
intellectual property significantly.
Research limitations/implications – The research is solely focused on firms’ operating in the EuropeanUnion. Future studies should extend the analysis to other geographies.
Practical implications – At a real impact level, the study suggests that intellectual property is only partially fostered by digital skills and digital technologies. In this sense, digital skills might be overrated.
Originality/value – Differently from prior research, this study originally detangles the impact of digital technologies on firm’s intellectual capital by suggesting the existence of an inverse u-shaped relationship between variables.