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 …

This paper investigates the relationship between product market competition (PMC) and innovation. A growth model is … reduce innovation incentives for laggards. There are four key predictions. First, the relationship between product market … competition (PMC) and innovation is an inverted U-shape. Second, the equilibrium degree of technological neck-and-neckness' among …

between appropriability mechanisms, innovation and firm-level productivity. We enrich this model in several ways. First, we … consider different types of innovation spending and study the differences in estimates when innovation spending (rather than R …&D spending) is used to predict innovation in the CDM model. Second, we assume that a firm simultaneously innovates and chooses …

innovative performance measured as turnover due to innovation, but not between patenting and subsequent employment growth. The …