Networking Innovation in the European Car Industry : Does the Open Innovation Model Fit?

Abstract

The demands of transportation have driven the automobile industry into an innovation race. Uncertain technological trends, long development cycles, highly capital-intensive product development, saturated markets, and environmental and safety regulations have subjected the sector to major transformations. The technological and organisational innovations related to these transformations necessitate research that can enhance our understanding of the characteristics of the new systems. The study investigates the applicability of the Open Innovation concept to a mature capital-intensive asset-based industry - the European automobile industry, which is preparing for a radical technological discontinuity. Purposely selected knowledgeable respondents were interviewed across seven European countries.The findings contribute to the understanding of the OI concept by identifying key obstacles to the wider adoption of the OI model in the European car industry, and signalling the importance of intermediaries and large incumbents for driving network development and OI practices as well as the need of new competencies to be developed by all players