IDEAS home Printed from https://ideas.repec.org/p/wiw/wiwpeg/geo-disc-2019_06.html
   My bibliography  Save this paper

Regional Resilience and the Future of Ontario’s Automotive Sector in the Age of Digital Disruption

Author

Listed:
  • Elena Goracinova
  • David A. Wolfe

Abstract

The global automotive industry is currently experiencing the greatest disruption it has faced in over a century. The advent of connected, autonomous and electric vehicles and the popularity of ride sharing services are transforming the industry to one that is increasing referred to as transportation as a service (TaaS), transforming the customer experience and potentially shifting the entire industry sector away from private modes of transportation. Substantial uncertainty exists as to whether traditional automotive hubs in Automotive Alley will remain central to the growing digitization of the automotive industry or whether they will be replaced by new geographies with greater strength in digital technologies. This paper explores the extent to which efforts currently underway in the southern Ontario automotive cluster to meet the challenge of digitization in the auto industry are laying the foundations for a process of new path creation or modernization and institutional reconfiguration. The paper argues that the strength of Ontario’s regional innovation system (RIS) and growing OEM R&D investments provide expanding opportunities for the cluster to remain competitive either by 1) firms upgrading or moving up the value chain by strengthening skills and production capabilities; or 2) modernizing on the basis of connected or electric vehicle technologies or organizational innovations. The focus of the study are the current efforts on the part of OEMs to adapt to this rapidly changing technological paradigm and the role played by current federal and provincial policies to intensify regional knowledge linkages. The paper concludes with a discussion of the possible trajectory for the future development of the region’s automotive cluster.

Suggested Citation

  • Elena Goracinova & David A. Wolfe, 2019. "Regional Resilience and the Future of Ontario’s Automotive Sector in the Age of Digital Disruption," PEGIS geo-disc-2019_06, Institute for Economic Geography and GIScience, Department of Socioeconomics, Vienna University of Economics and Business.
    • Handle: RePEc:wiw:wiwpeg:geo-disc-2019_06
    as

    Download full text from publisher

    File URL: https://www-sre.wu.ac.at/sre-disc/geo-disc-2019_06.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ron Boschma, 2015. "Towards an Evolutionary Perspective on Regional Resilience," Regional Studies, Taylor & Francis Journals, vol. 49(5), pages 733-751, May.
    2. Strambach Simone & Klement Benjamin, 2013. "Exploring plasticity in the development path of the automotive industry in Baden-Württemberg: the role of combinatorial knowledge dynamics," ZFW – Advances in Economic Geography, De Gruyter, vol. 57(1-2), pages 67-82, October.
    3. Eickelpasch, Alexander & Fritsch, Michael, 2005. "Contests for cooperation--A new approach in German innovation policy," Research Policy, Elsevier, vol. 34(8), pages 1269-1282, October.
    4. Bengt-åke Lundvall, 2012. "One Knowledge Base or Many Knowledge Pools?," Chapters, in: Richard Arena & Agnès Festré & Nathalie Lazaric (ed.), Handbook of Knowledge and Economics, chapter 13, Edward Elgar Publishing.
    5. Arne Isaksen & Roman Martin & Michaela Trippl (ed.), 2018. "New Avenues for Regional Innovation Systems - Theoretical Advances, Empirical Cases and Policy Lessons," Springer Books, Springer, number 978-3-319-71661-9, March.
    6. John Holmes & Tod Rutherford & Jeffrey Carey, 2017. "Challenges Confronting the Canadian Automotive Parts Industry: What Role for Public Policy?," Canadian Public Policy, University of Toronto Press, vol. 43(s1), pages 75-89, January.
    7. Ron A. Boschma & Koen Frenken, 2006. "Why is economic geography not an evolutionary science? Towards an evolutionary economic geography," Journal of Economic Geography, Oxford University Press, vol. 6(3), pages 273-302, June.
    8. Trippl, Michaela & Asheim, Björn & Miorner, Johan, 2015. "Identification of regions with less developed research and innovation systems," Papers in Innovation Studies 2015/1, Lund University, CIRCLE - Centre for Innovation Research.
    9. Ron Martin & Peter Sunley, 2011. "Conceptualizing Cluster Evolution: Beyond the Life Cycle Model?," Regional Studies, Taylor & Francis Journals, vol. 45(10), pages 1299-1318, November.
    10. John Cantwell, 2017. "Innovation and international business," Industry and Innovation, Taylor & Francis Journals, vol. 24(1), pages 41-60, January.
    11. André Spithoven & Wim Vanhaverbeke & Nadine Roijakkers, 2013. "Open innovation practices in SMEs and large enterprises," Small Business Economics, Springer, vol. 41(3), pages 537-562, October.
    12. Tod D. Rutherford & John Holmes, 2007. "Entrepreneurship, knowledge and learning in cluster formation and evolution: the Windsor Ontario tool, die and mould cluster," International Journal of Entrepreneurship and Innovation Management, Inderscience Enterprises Ltd, vol. 7(2/3/4/5), pages 320-344.
    Full references (including those not matched with items on IDEAS)

    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. Silvia Rita Sedita & Ivan De Noni & Luciano Pilotti, 2014. "How do related variety and differentiated knowledge bases influence the resilience of local production systems?," "Marco Fanno" Working Papers 0180, Dipartimento di Scienze Economiche "Marco Fanno".
    2. Dirk Fornahl & Robert Hassink & Max-Peter Menzel, 2015. "Broadening Our Knowledge on Cluster Evolution," European Planning Studies, Taylor & Francis Journals, vol. 23(10), pages 1921-1931, October.
    3. Bjørn T. Asheim & Arne Isaksen & Roman Martin & Michaela Trippl, 2017. "The role of clusters and public policy in new regional economic path development," Chapters, in: Dirk Fornahl & Robert Hassink (ed.), The Life Cycle of Clusters, chapter 1, pages 13-34, Edward Elgar Publishing.
    4. Björn T. Asheim & Markus Grillitsch & Michaela Trippl, 2016. "Regional innovation systems: past – present – future," Chapters, in: Richard Shearmu & Christophe Carrincazeaux & David Doloreux (ed.), Handbook on the Geographies of Innovation, chapter 2, pages 45-62, Edward Elgar Publishing.
    5. 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.
    6. Lars Coenen & Bjørn Asheim & Markus M Bugge & Sverre J Herstad, 2017. "Advancing regional innovation systems: What does evolutionary economic geography bring to the policy table?," Environment and Planning C, , vol. 35(4), pages 600-620, June.
    7. 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.
    8. Kim, Jinhee & Lee, Keun, 2022. "Local–global interface as a key factor in the catching up of regional innovation systems: Fast versus slow catching up among Taipei, Shenzhen, and Penang in Asia," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    9. Joao Carlos Lopes & Amélia Branco, 2013. "The Clustering of Cork Firms in Santa Maria da Feira: Why History Matters," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 3(1), pages 354-354.
    10. Michaela Trippl & Markus Grillitsch & Arne Isaksen & Tanja Sinozic, 2015. "Perspectives on Cluster Evolution: Critical Review and Future Research Issues," European Planning Studies, Taylor & Francis Journals, vol. 23(10), pages 2028-2044, October.
    11. Amélia Branco & João Carlos Lopes, 2013. "Vantagens da concentração geográfica da produção: o caso da indústria corticeira de Santa Maria da Feira," Working Papers Department of Economics 2013/04, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    12. Martin, Hanna & Martin, Roman & Zukauskaite, Elena, 2018. "The Multiple Roles of Demand in Regional Development A Conceptual Analysis," Papers in Innovation Studies 2018/10, Lund University, CIRCLE - Centre for Innovation Research.
    13. Ron Boschma, 2015. "Do spinoff dynamics or agglomeration externalities drive industry clustering? A reappraisal of Steven Klepper’s work," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 24(4), pages 859-873.
    14. Pedro Marques & Kevin Morgan, 2021. "Innovation without Regional Development? The Complex Interplay of Innovation, Institutions, and Development," Economic Geography, Taylor & Francis Journals, vol. 97(5), pages 475-496, October.
    15. Vitor Miguel Ribeiro & Celeste Varum & Ana Dias Daniel, 2021. "Introducing microeconomic foundation in data envelopment analysis: effects of the ex ante regulation principle on regional performance," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(3), pages 1215-1244, September.
    16. Laurence Cloutier & Karim Messeghem, 2022. "Whirlwind model of entrepreneurial ecosystem path dependence," Small Business Economics, Springer, vol. 59(2), pages 611-625, August.
    17. 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.
    18. Silvia Rocchetta & Andrea Mina, 2019. "Technological coherence and the adaptive resilience of regional economies," Regional Studies, Taylor & Francis Journals, vol. 53(10), pages 1421-1434, October.
    19. Johan Miörner & Michaela Trippl, 2018. "Embracing the future: Path transformation and system reconfiguration for self-driving cars in West Sweden," PEGIS geo-disc-2018_04, Institute for Economic Geography and GIScience, Department of Socioeconomics, Vienna University of Economics and Business.
    20. Hanna Martin & Roman Martin & Elena Zukauskaite, 2019. "The multiple roles of demand in new regional industrial path development: A conceptual analysis," Environment and Planning A, , vol. 51(8), pages 1741-1757, November.

    More about this item

    Keywords

    regional resilience; path development and transformation; regional innovation policies; connected; automated and electric vehicles; automotive sector; Ontario; Canada;
    All these keywords.

    JEL classification:

    • O - Economic Development, Innovation, Technological Change, and Growth
    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy
    • L - Industrial Organization
    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • P - Political Economy and Comparative Economic Systems

    Statistics

    Access and download statistics

    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:wiw:wiwpeg:geo-disc-2019_06. 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: Gunther Maier (email available below). General contact details of provider: http://www.wu-wien.ac.at/en/wgi .

    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.