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Industry emergence and market capture: The rise of autonomous vehicles

Document Type

Article

Abstract

In this paper we examine how the rise of Autonomous Vehicles (AV) is reshaping the power dynamics in the automobile industry through competition from the information technology (IT) industry. By introducing the concept of market capture, we analyze how incumbents and newcomers pursue control over the definition, evolution, and technology of a newly emerging market. We demonstrate this with an analysis of technological acquisitions and alliance networks for 2011–2018, a period where the AV industry first coalesced and then experienced dramatic growth. By examining firm transactions through their geographic locations and an array of centrality measures, we shed light on inter-firm dynamics shaping the emergence and evolution of the AV industry. This research demonstrates how market capture can serve as a useful framework to analyze competition, cooperation, geographic patterns, and power asymmetries in the transaction network of an emerging industry.

Publication Title

Technological Forecasting and Social Change

Publication Date

7-2022

Volume

180

ISSN

0040-1625

DOI

10.1016/j.techfore.2022.121661

Keywords

autonomous vehicles, corporate networks, market capture, technological alliances

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