Federal Initiatives To Induce Innovation In The Auto Industry: A State-Of-The-Art Assessment
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Federal Initiatives To Induce Innovation In The Auto Industry: A State-Of-The-Art Assessment

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    In response to the urgent national need to develop socially beneficial auto technology, the Auto Technology Program is assessing the role of alterĀ­native incentives as tools for inducing innovation. This is a complex task, and a multi-year effort is underway to address these questions. The goal of this report is to examine the innovation process, identify the critical issues and provide a state-of-the-art assessment of the subject. In pursuing this objective the report draws upon six technology contracts completed under the program, and in particular, relies heavily on the forthcoming report "Assessment of Effectiveness of Past Federal Actions Intended to Bring About Changes in Automotive Technology Having Substantial Public Benefit" by William J. Abernathy and Balaji S. Chakravarthy. The studies performed under contract were complemented by in-house activities which examined the spectrum of incentive policies, identified critical issues, analyzed the parameters of the innovation process, and explored past experience with economic incentives. In bringing this information together some editorial changes were made, but responsibility for the technical content rests solely with the respective authors. Incentives for innovation is a dynamic subject, and this state-of-the-art assessment document will be continually updated to reflect the results of ongoing studies. It is being released in its current, preliminary, form in the hope that it will stimulate a national debate on this crucial issue.
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