This is an introduction to the forthcoming volume "The Role of Innovation and Entrepreneurship in Economic Growth." The … chapters collected in this volume seek to answer the following questions: What is the relationship between innovation …/entrepreneurship and economic growth in specific industrial sectors? How has the relationship between innovation /entrepreneurship and …

How does firm entry affect innovation incentives and productivity growth in incumbent firms? Micro-data suggests that … threat spurs innovation incentives in sectors close to the technological frontier--successful innovation allows incumbents to … prevent entry. In laggard sectors it discourages innovation--increased entry threat reduces incumbents' expected rents from …