Market competition is central to innovative activity, the diffusion process and macro-economic productivity growth …. Productivity growth at all levels comes about through institutional reconfiguration in response to the ongoing market process …

use a dynamic model to measure the impact of large entrants on productivity, allowing for a controlled productivity …, we find that incumbents' productivity increase after large entry and that the magnitude of the increase declines with the … productivity of incumbents. Our findings highlight that large entrants play a crucial role in driving productivity growth. …