Aghion, Philippe; Blundell, Richard; Griffith, Rachel; … - Wissenschaftszentrum Berlin für Sozialforschung (WZB) - 2006
How does firm entry affect innovation incentives in incumbent firms? Micro data suggest that there is heterogeneity … that technologically advanced entry threat spurs innovation incentives in sectors close to the technology frontier … - successful innovation allows incumbents to survive the threat. In laggard sectors it discourages innovation - increased entry …