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Firm technological responses to regulatory changes: A longitudinal study in the Le Mans Prototype racing

Aversa, P. ORCID: 0000-0003-3175-9477 and Guillotin, O. (2018). Firm technological responses to regulatory changes: A longitudinal study in the Le Mans Prototype racing. Research Policy, doi: 10.1016/j.respol.2018.06.001

Abstract

Despite the critical role of regulations on competition and innovation, little is known about firm responses and related effects on performance under regulatory contingencies that are permissive or restrictive. By longitudinally investigating hybrid cars competing in the Le Mans Prototype racing (LMP1), we counter-intuitively suggest that permissive regulations increase technological uncertainty and thus decrease the firms’ likelihood of shifting their technological trajectory, while restrictive regulations lead to the opposite outcome. Further, we suggest that permissive regulations favour firms that innovate their products by sequentially upgrading core and peripheral subsystems, while restrictive regulations—in the long term— favour firms upgrading them simultaneously. Implications for theory and practice are discussed.

Publication Type: Article
Additional Information: © 2018, Elsevier. This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/
Publisher Keywords: regulations; environmental change; technological innovation; system complexity; technological trajectory; knowledge; performance; hybrid vehicles; Le Mans Prototype racing; LMP1
Subjects: T Technology > TL Motor vehicles. Aeronautics. Astronautics
Departments: Cass Business School > Management
URI: http://openaccess.city.ac.uk/id/eprint/19858
[img] Text - Accepted Version
This document is not freely accessible until 11 December 2019 due to copyright restrictions.
Available under License Creative Commons Attribution Non-commercial No Derivatives.

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