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Source: PACE Award

The PACE Award is an annual award from Automotive News. The focus of the award is an innovation (i) developed primarily by a supplier, (ii) that is new to the automotive industry, (iii) that is in use (e.g., used on a vehicle in production), and (iv) that "changes the rules of the game". Awards have been given for products, materials, processes, capital equipment, software and services. A panel of independent judges from industry, finance, research, and academia choose finalists from the initial applicants, make site visits to evaluate the innovation, and then gather to select winners, independent of the sponsors. Winners to date include suppliers from Japan, Korea, China, the US, Canada, Brazil, Germany, France, Italy, Poland and other European countries. Among the most awarded companies over the years are BorgWarner, Delphi Automotive, Federal-Mogul (acquired in 2018 by Tenneco), Valeo and PPG Industries as well as Robert Bosch GmbH, Gentex Corporation, and Siemens.
Automotive News and Ernst & Young founded the program, which gave out the first awards in 1995 to celebrate innovation, technological advancement and business performance among automotive suppliers. The black-tie awards ceremony has been held just prior to the annual SAE (Society of Automotive Engineers) convention in Detroit. The costs of the program (administration, judges out-of-pocket expenses, and the award ceremony) are paid by a combination of application fees and money from sponsors. For the 2019-20 the sponsors were Deloitte, APMA (the Canadian Automotive Modernization Program) and Invest Canada. Historically the annual award cycle began with gathering applications (through the end of summer, with online submissions); the selection of 30-35 finalists, who were announced at the auto industry's annual Global Leadership Conference in October at the Greenbrier; site visits by judges in November and December; the selection of winners in late January or early February; and the announcement of winners at a black tie event in Detroit in March or April.
For the 2019-2020 award cycle PACE added recognition as a PACE Pilot, which targeted pre-commercial innovations, to try to capture the rise of innovations tied to safety, fuel efficiency, vehicle electrification and driving assist/driving automation. This award attempts to capture innovations earlier in the development cycle, e.g. when they show up in announcements at the Consumer Electronics Show.
Awards programs such as PACE are potential sources for studying the nature of technological change. One such attempt is in Smitka and Warrian (2017). In Chapter 6, "Automotive Innovation Model and the Supply Chain: PACE Awards", they find that:
"The results indicate that technology-pull is dominant, not technology-push. We do observe some innovation that seems to represent using new materials to implement a well-understood approach that was not previously cost-effective or otherwise was not used. We also find the occasional bright idea that in some cases could have been implemented decades ago, had anyone thought to try. However, overall we find that new vehicle technologies are responses to regulatory pressure to improve safety, limit emissions, and improve fuel efficiency."
Similarly, David Andrea notes in Forbes that:
"While the popular press is having an interesting debate on whether Detroit or Silicon Valley will have the greatest influence over the mobility revolution, the 2019 PACE awards are dominated by the suppliers with the deepest R&D capabilities and longest histories of commercializing innovation. Reviewing the finalists, it is interesting that the vast majority, 26 of the 31 come from what would be considered "traditional suppliers." And only 6 of the firms are located outside 100 miles of industry's Detroit epicenter. Perhaps this is the result of selection bias as the process to submit applications, meet with judges, produce promotional materials and the like is not small in budget of executive time and funds, two resources always in short supply in smaller firms or start-ups."

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