Product service systems in the automobile industry: contribution to system innovation?

This article investigates the actual and potential contribution that product service systems (PSSs) can make in moving beyond incremental technological improvements towards a focus on behavioural changes and system innovation in the automobile industry. It begins by discussing the means by which existing and planned PSS initiatives can be evaluated in terms of their contribution towards innovation at the system level in the automotive industry. Building on and expanding earlier work, it is suggested that they should be assessed against an expanded set of five key evaluative criteria including: evidence of 'higher-order' learning amongst stakeholders; changes in infrastructure and institutional practice; changes in vehicle design. manufacture and end-of-life management; changes in vehicle ownership structure; and changes in modes of producer-user interactions. Following this discussion, the article provides a structured overview of some current and planned PSS initiatives at the empirical level in the automotive industry. The identified initiatives are then assessed against the key evaluative criteria in an effort to reveal their actual or potential contribution to meeting the sustainability challenges of the automotive industry. Based on this exercise, it is argued that since most current initiatives do not unify these key elements of a PSS in a single coherent system they do not constitute 'complete' versions of PSS, and therefore, fail to deliver the full range of envisaged benefits in contributing towards system innovation. The article concludes by outlining some key areas for future research into potential strategies to address such challenges. (C) 2006 Elsevier Ltd. All rights reserved.