Value creation and value appropriation dynamics: The case of the emergence of self driving car business

Abstract

Several recent events provide a strong signal that autonomous vehicle technology has led the automotive industry to a pivotal point. After a long period of stability, the automotive industry is transforming, when incumbents and newcomers are re-grouping in ecosystems, and sharing models redefining the “mobility sector”. The goals of this master thesis are to determine how Open Innovation creates new possibilities in organizing innovation within the ecosystem, thus giving rise to new drivers for value creation and value appropriation. To show how conventional carmakers are adapting to the new scenario in the era when connectivity and shared mobility takes off, and driverless vehicles come closer to reality. This study presents an attempt to offer some first thoughts on how the self-driving car industry might evolve. Whether the value will migrate from the Original Equipment Manufacturers (OEMs) to software or communication technology providers, as it did in the early computing industry. It will cause the rise of new industry platforms, that will act as an engine of innovation for the whole business ecosystem, redefining industrial architectures and business models. Finally, the thesis aims to identify the legal, ethical and economic impacts that self-driving vehicles can cause in society. For this purpose, some scenarios of potential winners and losers in the automotive industry will be presented in the conclusions.

Keywords: Open Innovation, New Business Ecosystems, Value creation and Value appropriation, Self-driving cars, Business models, Changing regulatory and legal frameworks