Making cars and trucks is a capital intensive business with high barriers to entry. It naturally benefits from mass production and economies of scale.
But I don’t understand why there isn’t more a more dynamic relationship between established automakers and entrepreneurs. Imagine if the auto industry had an ecosystem like the biotech industry. Thousands of startups develop new drugs, devices, and therapies. Successful innovations get licensed or sold off to larger players with mass production capacity.
BusinessWeek: Startups, Innovation, and the Auto Industry