Technical University of...

Chair of Urban Development

Department of Architecture

Technical University of Munich

RSA Winter Conference LONDON

Spatial effects of digital transformation.

An analysis on the example of an automotive R&D network

Jonas Glaesser

1

Jonas Glaesser, M.A.

Overview

2

1. Introduction: The challenges of the automotive industry

2. Theoretical background

3. Question and hypothesis

4. Data

5. Preliminary findings

6. Next steps

Jonas Glaesser, M.A. Seite 3

The BMW Research and Innovation Center Munich


1 Introduction

FIZ Map

4

BMW R&D Network

5Jonas Glaesser, M.A.


1 Introduction

The automotive industry in turmoil

6

• Financial Crisis• In-house or outsourcing

• Technological changes• Electrification

• Autonomous Driving

• New business models (Transportation-as-a-Service)

• Pressure of technological change• Economic competition

• Time-to-Market

• Changing regulation

• Challenges for R&D and its spatial consequences• Sourcing of new technologies and competences


2 Theoretical background

Spatial approaches towards innovation and proximity

7

National Systems of Innovation (Lundvall and Johnson 1994; Amable 2000;

Gertler, Wolfe, and Garkut 2000; Hollingsworth 2000)

• Influence of institutions on firms regarding innovation and learning

(technological and non-technological)

Local Innovation Systems (Amin and Cohendet 2004)

• Based on the benefits of agglomeration economies and spatial proximity

between firms

• Co-location and collaboration that support competition

• Clustering

• Urban amenities (Jacobs 1969)

• Tacit and codified knowledge

Role of proximty (Storper 1997; Boschma 2005)


3 Question and hypothesis

8

How does technological disruption change the spatial configuration

of R&D relations?

Main Hypothesis

Technological innovation and location are interconnected.

The more established a technology is, the more likely it is to be outsourced, and

the more disperse its context of origin will be.

Jonas Glaesser, M.A. 9

Network Adjustment vs. Node Adjustment Hypothesis

Network Adjustment Hypothesis:

Under pressure of technological change, it is assumed that R&D networks open

up to new locations, further industries, and other firms.

Node Adjustment Hypothesis:

Firms (suppliers) rather change their processes and technological basis, in order

to keep the existing linkages to central actors and not to lose the network as a

resource for further transactions.


Commission

(type of activity/service

and financial amount)

Development Service

Providers

4 Data

Supplier Data of BMW‘s external R&D commissions

2013

2014

2015

2016

2017

Internal

BMW R&D department

Firm locations

(exact addresses)

114937 Transactions

4886 firms

52 Countries

82 BMW departments 4968

Nodes

114937

Edges

Network

perspective

Years Attributes Cases

11

5 Descriptive Analysis of R&D Supplier Linkages


0

50

100

150

200

250

300

350

400

450

500

Munich Bavaria Germany Europe World

n = 1272

Spatial distribution of Development Service Providers

23% 25% 37% 3%12%


Spatial distribution of Development Service Providers transaction links

Permanent accessibility

(< 5 km) 22% 1898

Commuting distance

(5km to 50 km) 27% 2273

Metropolitan Region Munich

(>50 km to 120 km) 6% 508

Europe 44% 3757

World 1% 78

Jonas Glaesser, M.A.Permanent reachability (< 5 km) Commuting distance (5km to 50 km) Metropolitan Region Munich (>50 km to 120 km) Europe

22 % 27 % 6 % 44 %

n = 8814




Transaction volume EUR

Dis

tan

ce

Kilo

me

ter

16

0

500

1000

1500

2000

2500

Transactions

Average distance

Analysis of Supplier Linkages

in km

17

Analysis of Supplier Linkages: Interpretation

0

500

1000

1500

2000

2500

Transactions

Average distance

• New technologies are being

developed inhouse

• Established technologies rely on

a huge base of external linkages

18

Descriptive Analysis of Supplier Linkages

Powertrain

Design

Electronics

Driving Dynamics

Total Vehicle

Interior

Body and Exterior

Autonomous Driving

BMW i

Research and

Innovations

0

230

460

Transactions


19


Powertrain

Design

Electronics

Driving Dynamics

Total Vehicle

Interior

Body and Exterior

Autonomous Driving

BMW i

Research and

Innovations

0

230

460

Transactions


20


Powertrain

Design

Electronics

Driving Dynamics

Total Vehicle

Interior

Body and Exterior

Autonomous Driving

BMW i

Research and

Innovations

0

230

460

Transactions


21


Powertrain

Design

Electronics

Driving Dynamics

Total Vehicle

Interior

Body and Exterior

Autonomous Driving

BMW i

Research and

Innovations

0

230

460

Transactions


22


Powertrain

Design

Electronics

Driving Dynamics

Total Vehicle

Interior

Body and Exterior

Autonomous Driving

BMW i

Research and

Innovations

0

230

460

Transactions


23


Powertrain

Design

Electronics

Driving Dynamics

Total Vehicle

Interior

Body and Exterior

Autonomous Driving

BMW i

Research and

Innovations

0

230

460

Transactions


6 Next steps

• Enhancing the data set• categories of technological innovation to operationalize hypotheses

• add branch information

• Other variables (institutional proximity)

• Applying longitudinal analysis• Examine the changes over time

Chair of Urban Development

Department of Architecture

Technical University of Munich

RSA Winter Conference LONDON 25

Thank you for your attention!


[email protected]

+49 (0) 176 820 80 686

Backup

27


Powertrain

Design

Electronics

Driving Dynamics

Total Vehicle

Interior

Body and Exterior

Autonomous Driving

BMW i

Research and

Innovations

0

230

460

Transactions



2 Theoretical background

28

Holy Trinity (Storper 1997)

• Importance of localized

production systems (proximity),

despite advanced communication,

information, transportation

systems

• Localized conventions and norms

as background for further

economic activities (Maskell and

Malmberg: 1999)

• Triad of technologies,

organizations, and territories

(Storper 1997: p 42)

29

0

20000000

40000000

60000000

80000000

100000000

120000000

140000000

160000000

0 2000 4000 6000 8000 10000 12000 14000 16000 18000 20000

Tra

nsa

ction

Vo

lum

e

Distance to BMW

n = 8814

5 Descriptive Analysis of Supplier Linkages

Euro

km

30

0

20000000

40000000

60000000

80000000

100000000

120000000

140000000

160000000

0 2000 4000 6000 8000 10000 12000 14000 16000 18000 20000

Shanghai

Tra

nsa

ction

Vo

lum

e

Distance to BMW

n = 8814

5 Descriptive Analysis of Supplier Linkages

West Coast, USA

East Coast, USA

Euro

km

31

0

20000000

40000000

60000000

80000000

100000000

120000000

140000000

160000000

0 100 200 300 400 500 600 700 800 900 1000

5 Descriptive Analysis of Supplier LinkagesT

ran

sa

ction

Vo

lum

e

Distance to BMW

Euro

km

32

0

20000000

40000000

60000000

80000000

100000000

120000000

140000000

160000000

0 100 200 300 400 500 600 700 800 900 1000


ran

sa

ction

Vo

lum

e

Distance to BMW

Euro

km

Metropolitan Region Munich

Automotive Clusters in Southern

Germany

Automotive Industry in Northern

Italy

33


Powertrain

Design

Electronics

Driving Dynamics

Total Vehicle

Interior

Body and Exterior

Autonomous Driving

BMW i

Research and

Innovations

0

230

460

Transactions


34

Powertrain

Design

Electronics

Driving Dynamics

Total Vehicle

Interior

Body and Exterior

Autonomous Driving

BMW i

Research and

Innovations

0

230

460

Transactions


35


Powertrain

Design

Electronics

Driving Dynamics

Total Vehicle

Interior

Body and Exterior

Autonomous Driving

BMW i

Research and

Innovations

10

230

460

Transactions


36

Descriptive Analysis of Supplier Linkages0

270

540

Transactions

Powertrain

Design

Electronics

Driving Dynamics

Total Vehicle

Interior

Body and Exterior

Autonomous Driving

BMW i

Research and

Innovations

37

Descriptive Analysis of Supplier Linkages0

270

540

Transactions

Powertrain

Design

Electronics

Driving Dynamics

Total Vehicle

Interior

Body and Exterior

Autonomous Driving

BMW i

Research and

Innovations

38


Powertrain

Design

Electronics

Driving Dynamics

Total Vehicle

Interior

Body and Exterior

Autonomous Driving

BMW i

Research and

Innovations

0

270

540

Transactions


39


Powertrain

Design

Electronics

Driving Dynamics

Total Vehicle

Interior

Body and Exterior

Autonomous Driving

BMW i

Research and

Innovations

0

270

540

Transactions


40


Powertrain

Design

Electronics

Driving Dynamics

Total Vehicle

Interior

Body and Exterior

Autonomous Driving

BMW i

Research and

Innovations

0

270

540

Transactions


41


Powertrain

Design

Electronics

Driving Dynamics

Total Vehicle

Interior

Body and Exterior

Autonomous Driving

BMW i

Research and

Innovations

0

270

540

Transactions


42


Powertrain

Design

Electronics

Driving Dynamics

Total Vehicle

Interior

Body and Exterior

Autonomous Driving

BMW i

Research and

Innovations

0

270

540

Transactions


43


Powertrain

Design

Electronics

Driving Dynamics

Total Vehicle

Interior

Body and Exterior

Autonomous Driving

BMW i

Research and

Innovations

0

270

540

Transactions


44


Powertrain

Design

Electronics

Driving Dynamics

Total Vehicle

Interior

Body and Exterior

Autonomous Driving

BMW i

Research and

Innovations

0

270

540

Transactions


45


Powertrain

Design

Electronics

Driving Dynamics

Total Vehicle

Interior

Body and Exterior

Autonomous Driving

BMW i

Research and

Innovations

0

270

540

Transactions



5 Descriptive Analysis of Supplier Networks

0

500

1000

1500

2000

2500

3000

3500

4000

permanent reachability (< 5km)

commuting distance (5km to50 km)

EMM (>50 km to 120 km) Europe World

Chart Title

47

0

20000000

40000000

60000000

80000000

100000000

120000000

140000000

160000000

0 200 400 600 800 1000 1200 1400 1600 1800 2000


ran

sa

ction

Vo

lum

e

Distance to BMW

Euro

km


Spatial distribution of Advanced Producer Service transaction links

22%

27%

6%

44%

1%

Permanent reachability (< 5 km) Commuting distance (5km to 50 km)

Metrop. Region Munich (>50 km to 120 km) Europe

World n = 8814


Spatial Distribution of Development Service Providers0 10 20 30 40 50 60 70 80

Germany

Austria

USA

Italy

Sweden

Switzerland

China

United Kingdom

France

Netherlands

Belgium

Czech Republic

Denmark

India

Ireland

Norway

Portugal

Spain

South Korea

Hungary

Bulgaria

Georgia

Canada

Luxembourg

Russian Federation

Slovenia

Empirical findings on new links

50

• multinational corporations with increasing experience and

connectedness will be more likely to have further alliances in the

future (Gulati, 1999)

• Embedded linkages: network evolve around trust and shared

norms (Glückler 2007)

• multi-connectivity: new alliances were more likely to be formed

between those firms that were linked to each other at a previous

stage (Powell et al., 2005)

(cited by Bentlage 2018, forthcoming)

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