The Agglomeration Of R&D Facilities In Automotive Industry

The tendency of globalization and information leads the main stream of economy in the 21st century. They enable the industries make full use of the resources around the world, cut down the business cost and speed their development. However, the competitions between enterprises are also on a global stage. Consequently, many big enterprises and groups continue to promote the constant research and innovation in hi-tech, which are the only choice to make themselves at the high end of the value chain as to enhance their competitiveness. In this light, the resultant force of technology innovation and globalization impel the spatially concentration of creative enterprises or facilities in some predominant locations.A traditionally manufacturing industry as automobile is, competition in R&D have been a knockout in the industry with the upgrade of its industry development and the completeness in its industry chain. It reflects the sole competition in its cost and product differentiation. As the high-end function of technique, R&D facilities of automotive industry are apt to agglomerate in some specific areas. Based on the primary study of the characteristics and trends in the automotive industry development, the research works over the spatial agglomeration of R&D facilities in automotive industry.Firstly, there is a brief introduction on the development history of automotive industry followed by analysis on the development characteristics and trends in automotive industry as well as the meanings and significance of R&D in this industry. This chapter stresses on the important status and location preference of technology innovation and R&D activities in industry development.Then comes the main body of the thesis. Having known about the background of the industry, the paper zooms in on the largest automotive nation—USA and its automotive state—Michigan. Analyzing the data from Michigan automotive Research and Development directory and generating through the software Maplnfo, the detailed agglomeration characteristics are respectively researched by nationality, operation and size. The result shows two fundamental traits of the high concentration of R&D facilities in metro-Detroit as well as in the triangle zone. The reasons for spatial agglomeration are searched through large quantities of materials from works and company profiles. Technology proximity and the customer-oriented strategy areremarkable in so many factors. At the same time, the favorable environment for R&D is also necessary. The push from the companies and the pull from the region contribute jointly to the status of Michigan as the brain of automotive industry in USA and around the world.In the end, several revelations and questions should be further researched are mentioned in summary.