Two editorials from IHS SupplierBusiness are laying side-by-side on my desk, and both address the same topic: the demand from automotive OEMs/GM for access to new technology from suppliers. The first one that came out two weeks ago announced that OEMs want to invest in "start-ups as they look for key tech advantages."
Many of these big OEMs, especially those in the automotive industry, know that new technology happens fastest in small companies, often suppliers to the industry. Many are small entrepreneurial teams that are flexible and can move quickly when someone in the group gets a new idea, and a start-up is born. The big guys like that because it's something most of them cannot duplicate in their big, global silos where it often takes months—if not years—to get something new approved.
SupplierBusiness noted that Jaguar Land Rover (JLR) "will launch an 'Innovation Incubator' project in Portland, Oregon, in May to support innovation in connected car and infotainment technologies." According to the editorial, around 120 start-up companies will be selected to work with JLR over the next decade, and be offered space in this new incubator.