auto » Rated #1 In Best Purchase Experience in the Midwest 2013 and 2014 continued from page 45 Jeff Stewart Assistant New Car Sales Manager Serving the Community Since 1969 248-636-2736 CONGRATULATIONS GLASSMAN SUBARU A division of Glassman Automotive Group Serving Our Community For Over 45 Years! 5FMFHSBQI3Et4PVUIýFMEt t 2115120 Hands-free driving from Volkswagen with San Francisco-based Pivotal. FCA reached a deal to build 100 Chrysler Pacifica hybrid minivans for Google’s Self-Driving Car Project with plans to test the cars in Michigan. Other automobile manufacturers are making similar strategic investments. Toyota recently hired the entire staff of Jaybridge Robotics and has a new partnership with Uber. The technology disruption is bring- ing new competitors into the auto- mobile industry. Among the potential major new competitors are Apple, Alphabet, Tesla, Uber, Lyft, QNX, Cisco, Codha Wireless, Auto Talks, Mobileye and Nvidia. There are also hundreds of small technology compa- nies working on autonomous and con- nected vehicles. It is uncertain what the impact of technology disruption will be on the demand for vehicles. Autonomous vehicles and car-sharing may result in fewer vehicles sold and reduce the number of vehicles per household, which has been increasing steadily. Automakers are increasingly con- cerned about how technology has the potential to help people travel easily and cheaply without owning a car. The technology has the potential to open up new sources of revenue around data and analytics and, with autonomous vehicles and car-sharing, the miles driven will accumulate a lot more than a personally owned vehicle creating service opportunities. Also unclear is how value will be created and which companies will be able to capture the value. Will value be created by mechanical engineering and design or through software engineer- ing? Will existing automotive compa- nies be able to capture the value or will some value be transferred to the new companies looking to potentially enter the industry? Where personal excellence is achieved through a powerful community, a true culture of caring, and extraordinary resources. ͻ Established in 1840, the Berkley School District has provided ĞdžĐĞůůĞŶĐĞŝŶĞĚƵĐĂƟŽŶĨŽƌϭϳϲLJĞĂƌƐ͘ ͻ Berkley High School, ranked among the top 500 High Schools in the United States by Newsweek͕ŽīĞƌƐϮϰĚǀĂŶĐĞĚ WůĂĐĞŵĞŶƚĐŽƵƌƐĞƐĂŶĚŵŽƌĞƚŚĂŶϲϴйŽĨŐƌĂĚƵĂƚĞƐƚŽŽŬĂƚ ůĞĂƐƚϭWĐŽƵƌƐĞŝŶϮϬϭϲ͘ ͻ ĞƌŬůĞLJ^ĐŚŽŽůƐŽīĞƌƐĂƌŽďƵƐƚŵƵƐŝĐĂŶĚĮŶĞĂƌƚƐƉƌŽŐƌĂŵ ĨƌŽŵ<ŝŶĚĞƌŐĂƌƚĞŶƚŽϭϮƚŚŐƌĂĚĞͶĂŶĚŝŶϮϬϭϲǁĂƐŶĂŵĞĚ ĂĞƐƚŽŵŵƵŶŝƚLJĨŽƌDƵƐŝĐĚƵĐĂƟŽŶďLJƚŚĞEDD &ŽƵŶĚĂƟŽŶ͕ĨŽƌƚŚĞϱƚŚLJĞĂƌŝŶĂƌŽǁ͘ ͻ EŽƌƵƉ/ŶƚĞƌŶĂƟŽŶĂůŚŽƵƐĞƐďŽƚŚƚŚĞDzWĂŶĚWzW /ŶƚĞƌŶĂƟŽŶĂůĂĐĐĂůĂƵƌĞĂƚĞWƌŽŐƌĂŵƐ͘ ͻ ůůĮŌŚŐƌĂĚĞƐƚƵĚĞŶƚƐĞdžƉĞƌŝĞŶĐĞĂǁĞĞŬͲůŽŶŐĐĂŵƉƚŽŐĞƚŚĞƌ͘ ͻ ĞƌŬůĞLJƵŝůĚŝŶŐůŽĐŬƐŽīĞƌƐŚŝŐŚƋƵĂůŝƚLJĞĂƌůLJĐŚŝůĚŚŽŽĚ infant, toddler and preschool programs. engage. inspire. achieve. 46 September 8 • 2016 2118830 www.berkleyschools.org | 248.837.8000 Metro Detroit has a concentration of engineers and an installed base of automotive manufacturing and tier one suppliers. These advantages will not be sufficient for the technology disruption to be a major opportunity for the local area. The conservative business culture and large size of firms in the automobile industry is not consistent with developing leading- edge technology. GM is leaving Cruise Automation in San Francisco (where they are hiring new engineers) rather than moving it to Warren. Ford has its research center in Silicon Valley rather than in Dearborn. Research by Agrawal et al. in the Journal of Urban Economics (2014) demonstrates that in regions dominat- ed by large-firm research (automotive industry in Southeastern Michigan), the presence of a sizeable population of small firms significantly increases innovation. Policies designed to cul- tivate new ventures and small firms around automotive technology dis- ruption will be an effective economic development strategy in Southeastern Michigan. Economic growth happens when the potential for commercialization exists outside of the large firms. Innovation in autonomous and connected vehicles has the possibility to cross over into other industries generating more eco- nomic growth in the region. Without the presence of small inno- vative firms and an entrepreneurial ecosystem around autonomous and connected vehicles, Metro Detroit will not be able to capitalize on the auto industry technology disruption oppor- tunity. * Jonathan Silberman is a professor of economics at Oakland University. You can contact him at silberma@oakland.edu.