Richard, Blundell; Rachel, Griffith; Peter, Howitt; … - Department of Economics, Harvard University - 2009
How does firm entry affect innovation incentives in incumbent firms? Microdata suggest that there is heterogeneity … advanced entry spurs innovation incentives in sectors close to the technology frontier, where successful innovation allows … incumbents to survive the threat, but discourages innovation in laggard sectors, where the threat reduces incumbents' expected …