Adding to the omnipresent discussion of Artificial Intelligence (AI), this paper examines whether spiking US venture capital developed into a dotcom-like AI bubble. Analysing venture capital, patent, and stock market data from 1990 to 2018, the paper finds little evidence for an AI-related bubble. To avoid throwing all caution of AI bubbles to the winds, the paper recommends two policy approaches to take advantage of the development and avoid harmful future bubble spread.
The German government provides subsidies to foster investments in broadband infrastructure – a key element in reaping economic and social benefits of digitalisation. This paper finds that the subsidies rely on flawed assumptions about the motivation and behaviour of subsidy-receiving telecom companies (free-riding fear, low demand, red tape) and suffers from ill-designed targets in its execution (time gaming, cream skim-ming administrative rivalry). Finally, it proposes policy recommendation.