PurposeThe purpose of this paper is to analyse the economic and political conditions that could explain why the governments in developed economies have intervened in the automobile industry. The author identifies the main reasons and the shortcomings of these public interventions.Design/methodology/approachThe paper presents different forms of public intervention in the automobile industry of various countries over the past few decades: infant industry, research and development (R&D), global climate change and global systemic crisis.FindingsThe automobile sector is viewed by governments as a key sector and is subsidised for different reasons at different periods. The paper shows that governments give different reasons for public intervention in the automobile industry (infant industry, global climate change, R&D externalities, the global financial crisis, etc.). Whatever the theory, in practice, public interventions have a strong impact on the industry and its evolution.Practical implicationsThe paper highlights the importance for car manufacturers of monitoring the political initiatives of public authorities, which can affect the technological evolution of the automobile industry.Social implicationsFor households, the purchase of a car is quite important, and the political orientation of public subsidies in favour of one option over another, such as electric vehicles or an autonomous car, affects their choice.Originality/valueThe paper examines an issue which has not previously been addressed by journals, yet which is crucial, i.e. the impact of government decisions on the evolution of an industry. The approach can also be applied to other sectors.
Journal of Business Strategy – Emerald Publishing
Published: Jul 17, 2017
It’s your single place to instantly
discover and read the research
that matters to you.
Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.
All for just $49/month
Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly
Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.
Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.
Read from thousands of the leading scholarly journals from SpringerNature, Wiley-Blackwell, Oxford University Press and more.
All the latest content is available, no embargo periods.
“Hi guys, I cannot tell you how much I love this resource. Incredible. I really believe you've hit the nail on the head with this site in regards to solving the research-purchase issue.”Daniel C.
“Whoa! It’s like Spotify but for academic articles.”@Phil_Robichaud
“I must say, @deepdyve is a fabulous solution to the independent researcher's problem of #access to #information.”@deepthiw
“My last article couldn't be possible without the platform @deepdyve that makes journal papers cheaper.”@JoseServera