Aghion, Philippe; Blundell, Richard; Griffith, Rachel; … - Wissenschaftszentrum Berlin für Sozialforschung (WZB) - 2006
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 … threat reduces incumbents' expected rents from innovating. We find that the empirical patterns hold using rich micro panel …