IDEAS home Printed from https://ideas.repec.org/a/sae/loceco/v35y2020i4p337-362.html
   My bibliography  Save this article

Who will win the electric vehicle race? The role of place-based assets and policy

Author

Listed:
  • Clara Turner

    (University of California Berkeley, USA)

  • Marco R Di Tommaso
  • Chiara Pollio

    (University of Ferrara, Italy)

  • Karen Chapple

Abstract

Regional economies are shaped by their economic histories and existing endowments. This paper explores the question: how do a region’s economic history and institutional endowments affect its success and trajectory in an emerging industry? Our case, electric vehicle development and production, is an industry which combines more traditional skilled manufacturing with knowledge-driven innovation activities. We present deep qualitative case studies of two regions, focusing on one firm in each. The case of Tesla in the San Francisco Bay Area examines an electric vehicle firm in a region with a strong tech innovation system, while the case of Maserati in Emilia-Romagna, Italy, examines a firm that builds on a regional history of automotive manufacturing. Across cases, we compare regional skill endowments, institutional coordination, and place-based policymaking. We conclude that, as an emerging industry under a new economic paradigm, electric vehicle manufacturing by Tesla and Maserati represents two different conceptions of the industry and consequently two different location strategies. Yet these two strategies remain rooted in regional contexts, owing both their success to successful exploitations of these, and their struggles to their failure to compensate for regional gaps. This presents a clear opportunity for place-based industrial strategy to evolve and intervene.

Suggested Citation

  • Clara Turner & Marco R Di Tommaso & Chiara Pollio & Karen Chapple, 2020. "Who will win the electric vehicle race? The role of place-based assets and policy," Local Economy, London South Bank University, vol. 35(4), pages 337-362, June.
    • Handle: RePEc:sae:loceco:v:35:y:2020:i:4:p:337-362
    DOI: 10.1177/0269094220956826
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0269094220956826
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0269094220956826?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. John F. Helliwell & Robert D. Putnam, 1995. "Economic Growth and Social Capital in Italy," Eastern Economic Journal, Eastern Economic Association, vol. 21(3), pages 295-307, Summer.
    2. Ron A. Boschma & Rik Wenting, 2007. "The spatial evolution of the British automobile industry: Does location matter?," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 16(2), pages 213-238, April.
    3. Zamagni, Vera, 1997. "The Economic History of Italy 1860-1990," OUP Catalogue, Oxford University Press, number 9780198292890.
    4. Ron Boschma, 2015. "Towards an Evolutionary Perspective on Regional Resilience," Regional Studies, Taylor & Francis Journals, vol. 49(5), pages 733-751, May.
    5. Kai-Ingo Voigt & Oana Buliga & Kathrin Michl, 2017. "Driving Against the Tide: The Case of Tesla Motors," Management for Professionals, in: Business Model Pioneers, chapter 15, pages 187-198, Springer.
    6. Fabrizio Barca & Philip McCann & Andrés Rodríguez‐Pose, 2012. "The Case For Regional Development Intervention: Place‐Based Versus Place‐Neutral Approaches," Journal of Regional Science, Wiley Blackwell, vol. 52(1), pages 134-152, February.
    7. Simona Iammarino & Andrés Rodriguez-Pose & Michael Storper, 2019. "Regional inequality in Europe: evidence, theory and policy implications," Journal of Economic Geography, Oxford University Press, vol. 19(2), pages 273-298.
    8. Marco R. Di Tommaso & Mattia Tassinari & Stefano Bonnini & Marco Marozzi, 2017. "Industrial policy and manufacturing targeting in the US: new methodological tools for strategic policy-making," International Review of Applied Economics, Taylor & Francis Journals, vol. 31(5), pages 681-703, September.
    9. Michael Storper & Thomas Kemeny & Taner Osman & Naji, Institutional Research Information Service Makarem, 2015. "The Rise and Fall of Urban Economies," Post-Print hal-01534293, HAL.
    10. David, Paul A, 1985. "Clio and the Economics of QWERTY," American Economic Review, American Economic Association, vol. 75(2), pages 332-337, May.
    11. Chiara Pollio, 2018. "The Emilia-Romagna Automotive Industry in the Global Value Chain," L'industria, Società editrice il Mulino, issue 3, pages 429-456.
    12. Yannick Lung, 2000. "Is the Rise of Emerging Countries as Automobile Producers an Irreversible Phenomenon?," Palgrave Macmillan Books, in: John Humphrey & Yveline Lecler & Mario Sergio Salerno (ed.), Global Strategies and Local Realities, chapter 2, pages 16-41, Palgrave Macmillan.
    13. Maskell, Peter & Malmberg, Anders, 1999. "Localised Learning and Industrial Competitiveness," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 23(2), pages 167-185, March.
    14. Ron A. Boschma & Jan G. Lambooy, 2002. "Knowledge, Market Structure, and Economic Coordination: Dynamics of Industrial Districts," Growth and Change, Wiley Blackwell, vol. 33(3), pages 291-311.
    15. Meric S. Gertler, 2003. "Tacit knowledge and the economic geography of context, or The undefinable tacitness of being (there)," Journal of Economic Geography, Oxford University Press, vol. 3(1), pages 75-99, January.
    16. Di Tommaso, Marco R. & Tassinari, Mattia & Barbieri, Elisa & Marozzi, Marco, 2020. "Selective industrial policy and ‘sustainable’ structural change. Discussing the political economy of sectoral priorities in the US," Structural Change and Economic Dynamics, Elsevier, vol. 54(C), pages 309-323.
    17. Célestin Monga, 2013. "Theories of Agglomeration: Critical Analysis from a Policy Perspective," International Economic Association Series, in: Joseph E. Stiglitz & Justin Yifu Lin (ed.), The Industrial Policy Revolution I, chapter 4, pages 209-224, Palgrave Macmillan.
    18. Ha‐Joon Chang & Antonio Andreoni, 2020. "Industrial Policy in the 21st Century," Development and Change, International Institute of Social Studies, vol. 51(2), pages 324-351, March.
    19. Elisa Barbieri & Marco R Di Tommaso & Chiara Pollio & Lauretta Rubini, 2019. "Industrial Policy in China: The Planned Growth of Specialised Towns in Guangdong Province," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 12(3), pages 401-422.
    20. Geoffrey G. Bell, 2005. "Clusters, networks, and firm innovativeness," Strategic Management Journal, Wiley Blackwell, vol. 26(3), pages 287-295, March.
    21. Anja Schulze & John Paul MacDuffie & Florian A. Täube, 2015. "Introduction: knowledge generation and innovation diffusion in the global automotive industry—change and stability during turbulent times," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 24(3), pages 603-611.
    22. Robert Hassink, 2005. "How to unlock regional economies from path dependency? From learning region to learning cluster," European Planning Studies, Taylor & Francis Journals, vol. 13(4), pages 521-535, June.
    23. Gregory Tassey, 2014. "Competing in Advanced Manufacturing: The Need for Improved Growth Models and Policies," Journal of Economic Perspectives, American Economic Association, vol. 28(1), pages 27-48, Winter.
    24. Antonio Andreoni, 2018. "The architecture and dynamics of industrial ecosystems: diversification and innovative industrial renewal in Emilia Romagna," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 42(6), pages 1613-1642.
    25. Jan-Philipp Kramer & Javier Revilla Diez, 2012. "Catching the Local Buzz by Embedding? Empirical Insights on the Regional Embeddedness of Multinational Enterprises in Germany and the UK," Regional Studies, Taylor & Francis Journals, vol. 46(10), pages 1303-1317, November.
    26. Kai-Ingo Voigt & Oana Buliga & Kathrin Michl, 2017. "Business Model Pioneers," Management for Professionals, Springer, number 978-3-319-38845-8, December.
    27. Joseph E. Stiglitz & Justin Yifu Lin (ed.), 2013. "The Industrial Policy Revolution I," International Economic Association Series, Palgrave Macmillan, number 978-1-137-33517-3, June.
    28. Philip McCann & Raquel Ortega-Argil�s, 2015. "Smart Specialization, Regional Growth and Applications to European Union Cohesion Policy," Regional Studies, Taylor & Francis Journals, vol. 49(8), pages 1291-1302, August.
    29. Alberto Rinaldi, 2005. "The Emilian Model Revisited: Twenty Years After," Business History, Taylor & Francis Journals, vol. 47(2), pages 244-266.
    30. Bell, Martin & Albu, Michael, 1999. "Knowledge Systems and Technological Dynamism in Industrial Clusters in Developing Countries," World Development, Elsevier, vol. 27(9), pages 1715-1734, September.
    31. Perkins, Greg & Murmann, Johann Peter, 2018. "What Does the Success of Tesla Mean for the Future Dynamics in the Global Automobile Sector?," Management and Organization Review, Cambridge University Press, vol. 14(3), pages 471-480, September.
    32. Chong Ju Choi & Carla C. J. M. Millar & Caroline Y. L. Wong, 2005. "Knowledge and Cities," Palgrave Macmillan Books, in: Knowledge Entanglements, chapter 0, pages 39-51, Palgrave Macmillan.
    33. Ron Martin & Peter Sunley, 2006. "Path dependence and regional economic evolution," Journal of Economic Geography, Oxford University Press, vol. 6(4), pages 395-437, August.
    34. Ron Martin, 2009. "Rethinking Regional Path Dependence: Beyond Lock-in to Evolution," Papers in Evolutionary Economic Geography (PEEG) 0910, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Sep 2009.
    35. Brusco, Sebastiano, 1982. "The Emilian Model: Productive Decentralisation and Social Integration," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 6(2), pages 167-184, June.
    36. Jannika Mattes, 2013. "The Regional Embeddedness of Multinational Companies: A Critical Perspective," European Planning Studies, Taylor & Francis Journals, vol. 21(4), pages 433-451, April.
    37. Gerben Panne, 2004. "Agglomeration externalities: Marshall versus Jacobs," Journal of Evolutionary Economics, Springer, vol. 14(5), pages 593-604, December.
    38. Barbieri, Elisa & Di Tommaso, Marco R. & Pollio, Chiara & Rubini, Lauretta, 2020. "Getting the specialization right. Industrialization in Southern China in a sustainable development perspective," World Development, Elsevier, vol. 126(C).
    39. Marco R. Di Tommaso & Stuart O. Schweitzer, 2013. "Industrial Policy in America," Books, Edward Elgar Publishing, number 13749, March.
    40. Steven Klepper, 2007. "Disagreements, Spinoffs, and the Evolution of Detroit as the Capital of the U.S. Automobile Industry," Management Science, INFORMS, vol. 53(4), pages 616-631, April.
    41. Christian Lechner & Michael Dowling, 2003. "Firm networks: external relationships as sources for the growth and competitiveness of entrepreneurial firms," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 15(1), pages 1-26, January.
    42. Frank Moulaert & Farid Sekia, 2003. "Territorial Innovation Models: A Critical Survey," Regional Studies, Taylor & Francis Journals, vol. 37(3), pages 289-302.
    43. Baptista, Rui, 2000. "Do innovations diffuse faster within geographical clusters?," International Journal of Industrial Organization, Elsevier, vol. 18(3), pages 515-535, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chiara N Focacci & Vassil Kirov, 2021. "Regional entrepreneurial ecosystems: Technological transformation, digitalisation and the longer term—The automotive and ICT sectors in the UK and Bulgaria," Local Economy, London South Bank University, vol. 36(1), pages 56-74, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Di Tommaso, Marco R. & Prodi, Elena & Pollio, Chiara & Barbieri, Elisa, 2023. "Conceptualizing and measuring “industry resilience”: Composite indicators for postshock industrial policy decision-making," Socio-Economic Planning Sciences, Elsevier, vol. 85(C).
    2. Hervas Oliver,Jose Luis & Gonzalez,Gregorio & Caja,Pedro, 2014. "Clusters and industrial districts: where is the literature going? Identifying emerging sub-fields of research," INGENIO (CSIC-UPV) Working Paper Series 201409, INGENIO (CSIC-UPV).
    3. Celeste Varum & Carmen Guimarães & José Martinho Oliveira & Ana Martins, 2020. "Industrial dynamics in the context of a region’s international competitiveness," Local Economy, London South Bank University, vol. 35(3), pages 209-229, May.
    4. Ron Boschma & Carlo Gianelle, 2014. "Regional Branching and Smart Specialisation Policy," JRC Research Reports JRC88242, Joint Research Centre.
    5. Martin Henning & Erik Stam & Rik Wenting, 2013. "Path Dependence Research in Regional Economic Development: Cacophony or Knowledge Accumulation?," Regional Studies, Taylor & Francis Journals, vol. 47(8), pages 1348-1362, September.
    6. Grillitsch, Markus & Trippl, Michaela, 2016. "Innovation Policies and New Regional Growth Paths: A place-based system failure framework," Papers in Innovation Studies 2016/26, Lund University, CIRCLE - Centre for Innovation Research.
    7. Ron Boschma, 2015. "Towards an Evolutionary Perspective on Regional Resilience," Regional Studies, Taylor & Francis Journals, vol. 49(5), pages 733-751, May.
    8. Ron Boschma, 2021. "Designing Smart Specialization Policy: relatedness, unrelatedness, or what?," Papers in Evolutionary Economic Geography (PEEG) 2128, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Sep 2021.
    9. Arne Isaksen & Franz Tödtling & Michaela Trippl, 2016. "Innovation policies for regional structural change: Combining actor-based and system-based strategies," SRE-Disc sre-disc-2016_05, Institute for Multilevel Governance and Development, Department of Socioeconomics, Vienna University of Economics and Business.
    10. Barbieri, Elisa & Di Tommaso, Marco R. & Pollio, Chiara & Rubini, Lauretta, 2020. "Getting the specialization right. Industrialization in Southern China in a sustainable development perspective," World Development, Elsevier, vol. 126(C).
    11. Ron Boschma & Koen Frenken, 2015. "Evolutionary Economic Geography," Papers in Evolutionary Economic Geography (PEEG) 1518, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised May 2015.
    12. Sándor Juhász, 2021. "Spinoffs and tie formation in cluster knowledge networks," Small Business Economics, Springer, vol. 56(4), pages 1385-1404, April.
    13. Ron Boschma & Ron Martin, 2010. "The Aims and Scope of Evolutionary Economic Geography," Chapters, in: Ron Boschma & Ron Martin (ed.), The Handbook of Evolutionary Economic Geography, chapter 1, Edward Elgar Publishing.
    14. Joan Crespo, 2021. "Agencies, scales and times of path creation: The case of IoT in Toulouse," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(5), pages 1527-1545, October.
    15. Ron Boschma & Víctor Martín & Asier Minondo, 2017. "Neighbour regions as the source of new industries," Papers in Regional Science, Wiley Blackwell, vol. 96(2), pages 227-245, June.
    16. Ron Martin, 2010. "Roepke Lecture in Economic Geography—Rethinking Regional Path Dependence: Beyond Lock-in to Evolution," Economic Geography, Taylor & Francis Journals, vol. 86(1), pages 1-27, January.
    17. Gancarczyk, Marta & Gancarczyk, Jacek, 2018. "Proactive international strategies of cluster SMEs," European Management Journal, Elsevier, vol. 36(1), pages 59-70.
    18. Giulio Carli & Andrea Morrison, 2018. "On the evolution of the Castel Goffredo hosiery cluster: a life cycle perspective," European Planning Studies, Taylor & Francis Journals, vol. 26(5), pages 915-932, May.
    19. Aldo Enrietti & Aldo Geuna & Consuelo R Nava & Pier Paolo Patrucco, 2022. "The birth and development of the Italian automotive industry (1894–2015) and the Turin car cluster [Istruzione tecnica e professionale e progresso industriale dalla fine dell’Ottocento al fascismo]," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 31(1), pages 161-185.
    20. Grillitsch, Markus, 2014. "Institutional Change and Economic Evolution in Regions," Papers in Innovation Studies 2014/1, Lund University, CIRCLE - Centre for Innovation Research.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:loceco:v:35:y:2020:i:4:p:337-362. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.lsbu.ac.uk/index.shtml .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.