Change and stability in the automotive industry: a patent analysis

This study explores the evolution of the knowledge base of the dominant Original Equipment Manufacturers (OEMs) in the global automotive industry. Using data on patent families, we reconstruct and analyze their innovative portfolio in the period 1990-2014. The analysis documents experimentation in new technical fields as well as stability in industry-specific technical areas, allowing to draw implications on the underlying industry dynamics. Specifically, our results show that despite the emergence of technological opportunities in new and once-unrelated technical domains, the importance of core automotive technologies has increased over the period of analysis. At the same time, the relative position of carmakers along different performance dimensions has remained quite stable, suggesting that the technological capabilities that have traditionally driven success in this industry continue to play a key role in explaining firms’ competitive strength.