How technological constraints could influence competitiveness? An empirical study of avionics systems

Since 2000, avionics is facing several challenges, mostly driven by technological leaps in the electronics industry and innovation requirements from aircraft manufacturers. First, technological improvements now generally flows from civilian to military applications, due to costs cuts in Defense. Second, technological changes in avionics are impacted by the explosion of the electronics consumer industry. Third, the increasing of avionics systems´ complexity, which integrates more and more functions, has encouraged new players to enter the market. The aim of this article is to analyze how technological changes can affect the competitiveness of avionics firms. We refer to criticality levels as a determinant of the market competitiveness. Certification processes and costs could stop new comers to bring innovations from the consumer electronics industry and protects traditional players. This study will compare three avionics systems regarding their patent dynamics since 1980: flight controls, Integrated Modular avionics and Head-Up Displays. We assume that differences in the market competitiveness may appear due to their differences in their related criticality level and certification processes. Systems belonging to Design Assurance Level A or B required wide-range of capabilities and long-term experience. The opportunity for new comers to introduce a certified-version of their product could be constrained by certification requirements.