Innovation Radar for Disruptive Technology Insertion: The Case of Autonomous Vehicles in Brazil and France

Abstract:

Innovation Radar for Disruptive Technology Insertion: The Case of Autonomous Vehicles in Brazil and France

* Paper submitted to Gerpisa  young author prize

 1.    Purpose

Disruptive innovations such as AVs which are expected to have an impact in the economy also require a special ‘disruptive innovation policy’. The literature about disruptive innovation presents approaches related to impacts of this on management practices (Yu, 2010). However, policy’s implications need to be more discussed in terms of the design of innovation (Selhofer et al., 2012). On the other hand, it would be possible to determine policies prepared to ‘react’ to disruptive trends (Selhofer et al., 2012). 

A strategic response of economic and innovation policy should consist in creating positive framework conditions for innovation in a given country with the objective to strengthen the national innovative capacity. In other words, to make countries able to produce and commercialize a flow of innovative technology over the long term (Proksch, Haberstroh & Pinkwart, 2017; Wu, Ma & Zhuo, 2017).

In this context, by using the theoretical model of the Innovation Radar for the insertion of Autonomous Vehicles as a PSS in a country (Cavazza et al, 2019; in press), this paper seeks to map and discuss the innovation context of Brazil and France. Fundamentally, it seeks to address the gap between the development of AVs, the differences between two national contexts, and the lack of specific knowledge about how to manage disruptive innovation in countries.

2.    

Research design

The adopted research design was characterized as a qualitative approach of exploratory-descriptive nature.The case study was used as method to investigate a current phenomenon inserted in its natural context (Yin, 2015). To test and plot the framework of the Innovation Radar, open ended questionnaires were sent via GoogleDocs within the Automotive Industry and Urban Mobility fields in Brazil and in France. We were able to reach 20 specialists from Brazil and 20 from France. The indices for each dimension were obtained through the average response of the participants.

3.    

Main findings

This topic displays the plotting of the Innovation radar for Brazil and France (table 1; Figure 1), also, it discusses the main aspects and differences between the outputs as well and its context relation. 

 Table 1 – Key Dimensions and CSFs Index.

Source: Elaborated by the author

Figure 01:Innovation Radar – Brazil x France.

Source: Prepared by the authors

As we can observe, France has better metrics in all the dimensions when comparing to Brazil. This is not a surprising outcome, being corroborated by studies and reports that seek to map the macroeconomic, political, and social conditions of these countries (KPMG, 2018; WEF, 2019). One must also consider that, because it is a developed country, France has at its disposal a series of material and human resources that have been employed in this "race" to put AVs on the road(WEF, 2019). 

As pointed out by Bertrand Vigner, partner at the Strategy Group of KMPG in the country, 

“France has large companies including Renault, PSA- Opel, Transdev, Valeo, and Safran as well as startups such as Navya and Easymile investing heavily in AV. Although it has been slow to develop awareness, the French government is now proactively working to regulate and promote development, with an ambitious strategic plan expected soon" (KPMG, 2018, p.29). 

As from Brazil, one can consider that this country faces challenges as large as its territorial extension:

Brazil boasts the largest economy in Latin America, and its potential to further diversify and better utilize vast natural resources represent substantial opportunities. Recently, however, Brazil has faced domestic and external challenges that have hindered economic growth. Measures that stimulate greater private sector investment in infrastructure will be crucial for safeguarding the social progress achieved by Brazil in recent decades (WEF, 2019).

On the other hand, we must ponder the Brazilian importance and influence when it comes to the international automotive scenario. In an article written by Muller (2012), what carmakers see when they look at Brazil is South America's largest consumer market, a still-bustling economy - and a lot of potential customers. Besides it, Brazil is, in the world, the fifth-largest country and, in economic terms, incomes are rising, lifting almost 40 million more Brazilians into the middle class since 2003 and putting a vehicle purchase within their reach for the first time.  However only 14% of its roads are paved..

The Brazilian auto market stands out on the world stage and can be considered as the gateway of Latin America given that, currently Brazil is the fifth largest auto industry consumer market in the world, also accounting for more than half of the vehicles sold in Latin America (ICCT, 2015; SEBRAE, 2015).

The results of both countries for each key dimension are discussed in more detail in the final paper. 

1.    

Practical implications

The main contribution of this work is the integration of data and information from different sectors (social, political, economic, technological, and structural) of a given country, making it possible to map, discuss, and delve deeper about the real situation for the insertion of the AVs.

We sought to fill a gap in the literature related to the definition, adequacy, and application of an artifact to support the insertion and management of a disruptive innovation in a country. Finally, there is a proposal for methodological advancement, associated to critical success factors, with an empirical approach and easy adaptation and application around the world. Considering the  current and real context of the countries, the radar framework and its CSFs can be used in processes related to innovative capacity, governance and market reach efficiency, and effectiveness..

Although some studies and research present - in a partial and generalized way - some determinant factors for the insertion of the AVs in a country, there is a need to obtain a clear and assertive diagnosis that allows the formulation of guidelines and actions for capacity development of a country. The results obtained in Brazil and in France were crossed with official data and statistics and corroborate the use of this tool.