Falck, Oliver; Heblich, Stephan; Kipar, Stefan - Volkswirtschaftliche Fakultät, … - 2011
This paper analyzes the escape-entry incentive for innovation by incumbent firms. The threat posed by the possibility … of leading-edge firms entering the market influences incumbent innovation. To overcome problems of endogeneity, we apply … domestic entry has a negative effect on incumbent product innovation, which is a strong indication of new entrants’ comparative …