Car navigation systems Dr Frans van der Zee JIIP Annual Symposium, 17th November 2014 6th European Innovation Summit, Brussels 17 November 2014 JIIP Symposium 2014 1 1. Introduction • Car navigation around since early 20th century • Modern car navigation: start early 1980s • GPS car navigation ‘SatNav’: 1990 and beyond Etak Navigator 1985 Avto 1930 17 November 2014 Philips CarIn 1995 TomTom Go 2004 Smartphone + nav app 2009 2. SatNav: a mature innovation… • SatNav: Hardware (CPU, memory, GPS), software, maps • Very dynamic development path – 1981-1990 (development & market introduction) – 1990-2004 (GPS) – 2004-now (PND, interactive communication, smartphone) • Three main market segments (as from 2009): – Built-in ‘in-dash’ navigation systems – Portable navigation systems • ‘All-in-one’ Portable Navigation Device (PNDs) • Navigation apps (smartphone-based) 17 November 2014 JIIP Symposium 2014 3. Research & innovation landscape: critical contributions, critical players • 1985: Etak Navigator (US), Steven Lobbezzoo (Germany) • 1990: GPS ‘in dash’ car navigation in a production car – Japan in 1990 (Mitsubishi / Pioneer), followed by Toyota (1991) – Europe in 1994 (Philips CarIn in BMW 7-series) – US in 1995 (GuideStar in Oldsmobile; Magellan) • 2004: First ‘all-in-one’ Portable Navigation Device (TomTom Go) • 1999: First GPS/GSM safety phone by Benefon • 2007: iPhone introduction, apps • 2009: Google free maps 17 November 2014 JIIP Symposium 2014 4. Technologies What technologies made car navigation ‘big’? • GPS – global positioning system based on satellites and receivers • Digitalisation (digital maps, geocoding) • Memory (from CD-ROM to flash) for map storage/retrieval • Text-to-speech • Turn-by-turn guidance But also… • Dead reckoning; sensor technology • Map matching • Bluetooth • Screen technology (heading-up display, touch, colour, resolution) • Graphical user interface / graphic engine • Lithium ion battery • RDS-TMC / Live traffic 17 November 2014 JIIP Symposium 2014 5. What made it a major innovation? • Opening GPS–NAVSTAR satellite system to civic use in 2000 • Readiness of underlying innovations – – – – – Computing power and size (Moore’s law!) Software (Windows and open source: Linux, HTML) Digital maps Memory storage and retrieval External communication (mobile phone, bluetooth) • Close relation between ‘device makers’ and ‘map makers’ • Integration – making it an all-in-one portable device – “Apple-like” vision and entrepreneurship (TomTom) • Competition (price; new solutions) 17 November 2014 JIIP Symposium 2014 6. Market developments and outlook • In-dash segment: various producers, from electronics and automotive companies to PND producers (increasing strategic collaboration) • PND segment: TomTom, Garmin, MiTAC (strong consolidation, price erosion) • Nav App segment: Google, Hero (NavTeq), TomTom (Teleatlas), various specialised players • Live services: traffic information, weather forecasts, local search, dynamic routing, live point-of-interests (POIs), fuel pricing, etc • Hybrid and niche market applications • In-car entertainment / infotainment systems • Roadside assistance services / subscription services • EU’s Galileo (Positioning accurate to the decimetre; authentication feature) • HAD/self-driving/driverless car 17 November 2014 JIIP Symposium 2014 7. How did policy make a difference? • Clinton Administration decision to open up NAVSTAR for civic purposes • Emergency/safety legislation: GPS chip in mobile phones • RTD public policy: US military NAVSTAR + positioning technology • EU RTD public policy: mostly indirect, through supporting technologies and embedded innovations (integrating and building on the shoulders of other innovations (‘family of innovations’) – EU FP 5-6-7 (1998-now): some contributions, but limited, esp. to PND – Mostly incremental innovations extending/modernising SatNav systems • Next generation GNSS Galileo – to be introduced by 2017 Satellite navigation in H2020: 1st call 38 million euro, overall 140 million euro 17 November 2014 JIIP Symposium 2014 8. Europe’s role and contribution • Three main separate ‘development’ markets: US, Japan, Europe • Private companies leading – ‘closed’ innovation (automotive closed front) • Importance of integration of technologies and innovations • Importance of big electronics companies (Philips, Sony, Pioneer, Siemens, Bosch-Blaupunkt) and seed capitalists (esp. US: ETAK) in development • Japan leading in ‘in-dash’ early years until mid-1990s • Europe fast in technological development (Philips 1985, Lobbezzoo), but slower than others in market intro & roll-out (Philips CarIn system 1997) • Strategic importance of digital map and map software makers, with a telling historical development: NavTeq, ETAK, TeleAtlas • First in launching ‘all-in-one’ Portable Nav Device (PND) (TomTom, 2004) • First in launching first GPS phone (Benefon, 1999) • Limited position in smartphones, but big in maps and apps (NavTeq, now Here, owned by Nokia, TeleAtlas owned by TomTom) 17 November 2014 JIIP Symposium 2014 9 9. Lessons to be learned • SatNav is a typical example of a major innovation building on and successfully integrating other major innovations • Key elements for SatNav success: – – – – – Vision, ability to integrate Readiness and maturity of technologies and innovations Market understanding Long time horizon and deep pockets for innovation Timing (cf ETAK; Philips; TomTom) • Proof of European innovation paradox (Philips, Nokia), but also innovation success (TomTom, TeleAtlas) • Example of closed innovation, difficult-to-access world • Importance of public investment in supporting technologies (fundamental!), standards (mapping) and system development (GPS NavStar, Galileo) 17 November 2014 JIIP Symposium 2014 10