REGULATION AND INNOVATION IN THE AUTOMOBILE INDUSTRY

Stimuli for innovation within the automotive industry are discussed under the following types: internal stimuli, market structure, inventions, independent research, public expectations or crises, and government regulation. These forces influence the rate of auto industry innovation, as well as its focus, and often interact dynamically. The U.S. automakers have had little internal stimulus since the 1920's for development of motor vehicle innovations, particularly ones concerned with health and safety. In the last decade, Federal regulation has had a substantial influence on the priorities and the performance of the auto industry. Federal regulatory programs on safety, fuel economy, and emissions are stimulating a new level of product innovation. Future trends in auto industry innovation are discussed, including the negative effect of an overall reduction in government resources committed to civilian research and development, and high inflation rates. In conclusion, it is emphasized that a distinction must be made between innovation that is needed to foster consumer health and safety and that which merely refines technology. It is also stated that innovation becomes more necessary as time expands the gap between the growth of problems and the technology available to solve them.

• Supplemental Notes:
  • Also published in HS-028 918, "Government, Technology, and the Future of the Automobile," New York, 1980 p 319-33. Presented at Harvard Business School Symposium on Government, Technology, and the Automotive Future, Boston, 19-20 October 1978.
• Corporate Authors:

  McGraw-Hill, Incorporated

  330 West 42nd Street
  New York, NY  United States  10036
• Authors:
  • Claybrook, J
• Publication Date: 1980

Media Info

• Features: References;
• Pagination: 15 p.

Subject/Index Terms

• TRT Terms: Automobile industry; Consumers; Health; Innovation; Markets; Regulations; Safety factors; Technology; Trend (Statistics)
• Subject Areas: Law; Safety and Human Factors; Vehicles and Equipment;

Filing Info

• Accession Number: 00393047
• Record Type: Publication
• Source Agency: National Highway Traffic Safety Administration
• Report/Paper Numbers: HS-028 937
• Files: HSL, USDOT
• Created Date: Feb 28 1985 12:00AM