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Title:

An Optimization Model of Technology - and Government Regulation- Investments for Implementation – Industry Case

Accession Number:

01697570

Record Type:

Component

Abstract:

Everyday becomes more evident that companies struggle to estimate the adequate level of investment in new technologies, and that governments lack the tools to determine the impact of their regulations on industry. Despite these facts, few studies discuss ways to assess appropriate levels of investment for technological initiatives and government regulations. This study contributes to fill these specific gaps by providing a technology and government-regulations investment optimization model based on efficiencies. Results obtained from a survey to northern European companies, support the importance of estimating technology investment and government regulations levels. The survey identified the four most relevant factors for practitioners: quality, cost, technology adoption, and government regulations. Based on the survey´s results, the model evaluates the level of investment for technology adoption and government regulations using cost and quality as target variables. Additional data from a European carrier served to test the model.Results show that technology investment delivers more benefits in cost and quality by increasing technology adoption. However, the model also suggests diminishing returns, making efficiencies stall at a certain level of technology adoption, and showing an investment threshold depending on the type of benefit—cost or quality—the company seeks to maximize. Regarding Government regulation, the model shows a counterintuitive behavior at higher levels of investment for the cost coefficients, and at all levels of investment for the quality coefficient. The latter suggests that government regulation effects could be shifting from fixed-order cost to other types of costs.

Supplemental Notes:

This paper was sponsored by TRB committee ABG30 Standing Committee on Technology Transfer.

Report/Paper Numbers:

19-04623

Language:

English

Corporate Authors:

Transportation Research Board

Authors:

Monsreal, Mario

Pagination:

8p

Publication Date:

2019

Conference:

Transportation Research Board 98th Annual Meeting

Location: Washington DC, United States
Date: 2019-1-13 to 2019-1-17
Sponsors: Transportation Research Board

Media Type:

Digital/other

Features:

Figures; References; Tables

Geographic Terms:

Europe

Subject Areas:

Administration and Management; Finance; Law; Planning and Forecasting; Policy; Transportation (General)

Source Data:

Transportation Research Board Annual Meeting 2019 Paper #19-04623

Files:

TRIS, TRB, ATRI

Created Date:

Dec 7 2018 9:31AM