Susan Helper, Jennifer Kuan, 20 December 2016

Innovation is often associated with a few visionaries working in new and dynamic industries. In practice, however, critical innovation occurs daily at many points throughout a supply chain. This column uses recent survey data to examine innovation in the US automotive supply chain. Process innovations can have major downstream benefits, and ‘collaborative creativity’ between suppliers and customers is found to be critical in innovation efforts. US automakers should focus on strengthening ties with their suppliers in order to remain competitive.

Efraim Benmelech, Ralf R Meisenzahl, Rodney Ramcharan, 11 June 2016

The US government’s ‘bailout of bankers’ in 2008-09 remains a highly controversial moment in economic policy. Many critics suggest that intervention to relieve household debt may have been more effective in stimulating economic recovery. This column suggests that without federal intervention to stabilise financial markets and recapitalise some non-bank lenders, the magnitude of the economic collapse might have been much worse. While household debt was incredibly important in reducing demand, the financial sector dislocations and the lack of credit also played a critical role.

Petr Matous, Yasuyuki Todo, 16 June 2015

Japanese business groups, or keiretsu – cartels of companies with interlocking interests – have contributed much to the success of Japanese manufacturing in the 20th century. This column explores the future of this form of corporate governance, amid increasing calls for their dissolution. An examination of trade networks in the automotive industry shows that automakers no longer exhibit a preference for dealing with keiretsu partners. Globalisation, procurement scandals, and advances in modularisation have helped to erode the benefits of these long-term relationships.

Johannes Van Biesebroeck, Timothy Sturgeon, 10 August 2010

Could the car industry in developing countries start to produce vehicles that can compete domestically – perhaps even globally? This column argues that while the prospects for the automotive sector are still less promising than for other industries, as the markets for motor vehicles shift to the developing world and production inevitably follows, more development and design work will shift as well.

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