Empirical Evidence and Economic Implications of Blockchain as a General Purpose Technology

Abstract

Leading experts from academic, industrial and policy-making circles describe Blockchain as a disruptive and game changing technology across various sectors. However, the question, whether Blockchain does already have the properties of a General Purpose Technology (GPT) and, as such, will determine macroeconomic dynamics in the next decades, has been disregarded in the academic literature. This paper covers the research gap by systematically revealing the acknowledged features of a GPT - pervasiveness, innovation spawning effects and scope for improvement - in the newest available Blockchain-related patent data from PATSTAT. To gain insights about pervasiveness, (1) a generality index of Blockchain is compared to respective values of co-existing technologies usually considered (information and communication technology) and not considered (pharmaceutical technology) GPTs. The second feature, innovation spawning is dissected (2) analyzing variety of innovators patenting in Blockchain domain and (3) looking at firms' behavior in terms of entry and exit in line with industrial dynamics. (4) Investigation of evolution patterns of Blockchain patents provides insights about its scope for improvement. The empirical analysis advances the claim that Blockchain does already represent a GPT in the making and, therefore, has a potential to shape a technological era and cause substantial changes in the economic, social and institutional structures.