Analysis of Policy-Induced Technology Competition and Innovation in A-Segment Vehicles
Abstract
The research analyzed a technological innovation case in which a policy-induced business environment caused technology competition among automakers. In Korea, two major companies began competing for a dominant share of the A-segment vehicles market via proactive R&D when government policy allowed more car types to be included in the A-segment category. This article examines such a policy-induced technology competition phenomenon by employing an empirical data analysis method and detailed case study. This research contributes to gaining further insight into the management of the innovation with respect to environmentally friendly technologies such as electric cars. We propose the framework of Policy-Induced Technology Competition (PITC) as an appropriate basis for prompting the technology-policy interplay induced within the South Korean automobile market with the aim of promoting a sustainable shift through the industry race for green innovation. The methodology comprises an embedded case study, STATA, SAS, and mixed-effect beta regression. The results indicate that the seemingly counterproductive to environmental stability policy adjustment to include more fuel-exhausting models into a comparatively energy-efficient class of vehicles led to a higher degree of adoption of a green car model. The analysis of the given case on a policy-ignited A-segment vehicle market race in South Korea, covering consumer and manufacturer implications, could serve as a foundation for further policy-making initiatives for sustainable road transportation market adoption and diffusion encouragement. By adding the government-induced layer to the discussion on innovation adoption encouraged by consumer pain and supplier race, we identified a strong relationship between policy and sustainable innovation dissemination in the automobile industry in South Korea. The regression model also showed possible socioeconomic control variables relevant to the region, such as gender, household type, and wealth, for further policymaking for the EFV sector in general.
Keywords: technology competition, innovation, A-segment vehicles.
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