The Lasting Impact of Steam Engines on Germany's Economy: Lessons for AI Adoption

Research reveals that regions in Germany where steam engines were widely adopted in the 19th century continue to experience economic benefits, such as higher wages and better educational attainment. The study suggests that early adoption of artificial intelligence could yield similar advantages for today's economies.

A new study indicates that the steam engine continues to influence Germany's economy, highlighting the potential benefits of early adoption of technology, such as artificial intelligence.

According to research from the ROCKWOOL Foundation Berlin, areas with a high prevalence of steam engines at the end of the 19th century boast wages that are 4.3% higher than average. These regions also have a greater concentration of technically trained workers and more productive firms.

Christian Dustmann, director of RFBerlin, emphasizes that policymakers could draw lessons from history as the rise of AI presents new opportunities for economic growth.

(With inputs from agencies.)