This award is co-funded by the Studies in Policy, Science, Engineering and Technology component of the Science and Society Program and the Program on Innovation and Organizational Change. The project studies the co-evolution of knowledge capabilities and industry structure by investigating the automotive airbag industry in the U.S. Several characteristics make this industry a good example for industry emergence in the high-tech sector. First, the product is complex and knowledge intensive, and combines multiple knowledge domains (mechanical, chemical, electrical/electronic, software, and textile), and thus its evolution presents an interesting case for studying the path of knowledge building and combination. Second, the industry experienced rapid growth over a relatively short time period. After twenty years of delay due to legal maneuvers between government and the auto industry, the automotive airbag industry grew from non-existence into a multi-billion dollar industry in less than fifteen years. The project has two major objectives. First, firms' knowledge creation strategies will be documented and categorized by mapping their patenting activities from 1970-2000. To do this, a database that includes all patents filed in this industry, and all patent citations will be created. For coding purposes this patent data set will be augmented with data from archival sources. This quantitative information, particularly the citation patterns, will allow investigation of the paths of knowledge creation (its flow, additions, and combinations) over time. Second, through combining the data on knowledge creation paths with data on firm success, such as firm survival and market share, the role of knowledge creation for firm success, and ultimately for the evolution of the industry structure, will be investigated. The project will build theory by (a) describing the paths of knowledge creation in emerging high-tech industries, and (b) explaining the effect of these knowledge creation strategies on firm performance and industry structure. Considering technological, economic, strategic, and legal aspects, the project will contribute to a better understanding of the co-evolution of technological innovations and the related industry structure. The improvement of the understanding of both the role of knowledge for competitiveness in emerging industries and its path of creation will help to increase the competitiveness of U.S. manufacturing firms. Research results will be presented to academic, industrial, and governmental audiences. Furthermore, the results will be integrated in a course on Technology Management that the PI teaches at the University of Michigan.
