Innovation in the United Kingdom tractor industry

Abstract

This paper examines the pattern of technological innovation that has characterised the United Kingdom Tractor Industry over the past 25 years. The conclusion that competition in this industry has been marked by continuous incremental innovation is derived from an empirically-based technical change index as well as detailed case studies of the innovation process in hydraulics, transmission and cab design. The technical change index of tractor performance over the years 1965 to 1975 shows an increase of approximately 30% in overall tractor performance despite the fact that no radical innovation has taken place during this period. The prevalence of incremental innovation in the Tractor Industry is discussed in relation to a theoretical model of technological innovation developed by Utterback and Abernathy. It is argued that the Tractor Industry in the UK is technically more dynamic than one would expect from the classification scheme suggested in this model.