Workforce Upskilling and Open Innovation as Drivers of EV Hub Development: A Study of Auto Ancillary Firms in the Marathwada Region
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Abstract
Regional electric vehicle (EV) hubs require a skilled workforce and cross-firm collaborative innovation. Yet, there is a lack of empirical studies that explore the interaction between workforce upskilling and open innovation in developing countries to advance the development of EV centres. The study is based on 200 ancillary companies in the traditional IC engine cluster of Marathwada region in Maharashtra, which is now an EV cluster with mega investments by Toyota Kirloskar, Ather Energy and JSW Green Mobility.
This study uses a quantitative survey and partial least squares (PLS) structural equation modelling to test the model that workforce upskilling and open innovation act as two parallel drivers of EV hub readiness, both of which rely on the innovation capability. The data shows that workforce upskilling (β = 0.438, p < 0.001) and open innovation (β = 0.312, p < 0.001) are significant determinants of EV hub readiness, with workforce upskilling having a higher impact. External technology collaboration and hub readiness are completely mediated by innovation capability. A multi‑group analysis shows that large firms are significantly more engaged in open innovation than micro firms (mean difference = +1.8, p < 0.001) and these results signify a capability gap that could undermine inclusive hub development.
The study contributes to three areas: First, it is a crucial element to workforce development being a key component of the formation of EV hubs in addition to capital subsidies and infrastructure focus. Secondly, it measures the degree of open innovation shortfall between large and small companies, revealing an under-noted aspect of industrial inequality. Third, it creates an EV Hub Readiness Index to help policy makers as a diagnostic tool. Policy implications are given as Skill voucher programmes, Mandatory OEM-MSME technology transfer agreements and Cluster-level open innovation platform..
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