INSTITUTIONAL DESIGN FOR INFRASTRUCTURE DEPLOYMENT: THE CASE OF SIEMENS/CO-PILOT

Together with other firms, Siemens is currently implementing its EURO-SCOUT system in Europe through the Co-Pilot consortium. Co-Pilot provides one model of institutional design for intelligent transportation systems (ITS) deployment. Siemens' approach to transport telematics originally reflected its history as a vendor of urban traffic control systems. EURO-SCOUT's beacon technology was built on the preexisting traffic control cables and the system was to be largely financed by public procurement. It would serve the policy goal of improved traffic efficiency and Siemens was to supply the system in a competitive market. In the course of field tests in Berlin, Siemens learned that a different approach would be needed. Public financing was not forthcoming. Instead, Siemens would have to use private capital. Moreover, traffic efficiency was not an urgent policy need. Instead, the system would have to serve green policies promoting mass transit and discouraging vehicle use. Finally, a go-it-alone market approach was politically unacceptable. Instead, Siemens would have to collaborate with other firms in installing infrastructure. These experiences defined the conditions for implementation. Launched in 1994, Co-Pilot satisfies all conditions. This new institution offers valuable lessons for others. Many ITS programs have been launched on the assumption that gains in traffic efficiency would justify public investments. Co-Pilot shows that other public policies may be more relevant, particularly environmental policies. Co-Pilot also offers a model for private financing of ITS, rather than public financing. Finally, it shows how firms can cooperate in infrastructure provision.

  • Supplemental Notes:
    • Five volumes of papers and one volume of abstracts comprise the published set of conference materials.
  • Corporate Authors:

    VERTIS

    TORANOMOM 34 MORI BUILDING 1-25-5
    TORANOMON, MINATOKU, TOKYO 105  Japan 
  • Authors:
    • Sussman, J
    • Klein, H K
  • Conference:
  • Publication Date: 1995-11

Language

  • English

Media Info

  • Pagination: p. 2336

Subject/Index Terms

Filing Info

  • Accession Number: 00724501
  • Record Type: Publication
  • Report/Paper Numbers: Volume 5
  • Files: TRIS
  • Created Date: Sep 2 1996 12:00AM