The R&D Strategy of Automobile Companies in Radical Innovation

Abstract

This paper focuses on patterns of innovation and the R&D strategy of automobile companies for technological changes. Tushman and Anderson (1986) pointed out that there are two types of technological changes: incremental technological change and radical technological change. In particular, radical technological change may largely affect existing companies and new entrants for gaining competitive advantage in the emerging market. To examine this proposition, we use the patent information of existing automobile company (Toyota) and new entrants (Tesla, BYD) to analyze their R&D strategies on electric vehicle by social network analysis and cluster analysis. The analyses in this paper include the following: (1) To capture the radical and incremental technological changes from each company’s R&D projects, and visualize these changes, (2) To examine the relationship between technological discontinuities and the R&D strategies of automobile companies. We conclude that patterns of corporate R&D strategy that cope with the threat of radical technological changes differ from company in automobile industry, and we suggest the reason that cause this difference.