The DOI matches its Crossref record; 85 of the 85 references it cites were found in a registry or an index.
The Effects of Entry on Incumbent Innovation and Productivity
Open accessAbstract
How does firm entry affect innovation incentives in incumbent firms? Microdata suggest that there is heterogeneity across industries. Specifically, incumbent productivity growth and patenting is positively correlated with lagged greenfield foreign firm entry in technologically advanced industries, but not in laggard industries. In this paper we provide evidence that these correlations arise from a causal effect predicted by Schumpeterian growth theory—the threat of technologically advanced entry spurs innovation incentives in sectors close to the technology frontier, where successful innovation allows incumbents to survive the threat, but discourages innovation in laggard sectors, where the threat reduces incumbents' expected rents from innovating. We find that the empirical patterns hold using rich micro panel data for the United Kingdom. We control for the endogeneity of entry by exploiting major European and U.K. policy reforms, and allow for endogeneity of additional factors. We complement the analysis for foreign entry with evidence for domestic entry and entry through imports.
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Cites
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The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity
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“This debate underlies the consideration of costs and benefits of globalization and the discussion on entry regulation in different countries and industries (Ace-moglu et al., 2006; Bertrand & Kramarz, 2002; Djankov et al., 2002; Nicoletti & Scarpetta, 2003).”
The Economic Theory of Index Numbers and the Measurement of Input, Output, and Productivity
Caves, D. W., Christensen, L. R., & Diewert, W. E. (1982) · Econometrica · doi:10.2307/1913388 · Cited by 3,734
Do Domestic Firms Benefit from Direct Foreign Investment? Evidence from Venezuela
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Ayyagari, M., Demirgüç-Kunt, A., & Maksimovic, V. (2011) · Journal of Financial and Quantitative Analysis · doi:10.1017/s0022109011000378 · Cited by 911
The Long and Short (of) Quality Ladders
KHANDELWAL, A. (2010) · Review of Economic Studies · doi:10.1111/j.1467-937x.2010.00602.x · Cited by 835
Intermediate input imports and innovations: Evidence from Chinese firms' patent filings
Liu, Q., & Qiu, L. D. (2016) · Journal of International Economics · doi:10.1016/j.jinteco.2016.09.009 · Cited by 499
Does services liberalization benefit manufacturing firms?
Arnold, J. M., Javorcik, B. S., & Mattoo, A. (2011) · Journal of International Economics · doi:10.1016/j.jinteco.2011.05.002 · Cited by 367
Bourlès, R., Cette, G., Lopez, J., Mairesse, J., & Nicoletti, G. (2013) · The Review of Economics and Statistics · doi:10.1162/rest_a_00338 · Cited by 360
Metadata
- Authors
- Aghion, P., Blundell, R., Griffith, R., Howitt, P., & Prantl, S.
- Venue
- Review of Economics and Statistics
- Publisher
- MIT Press - Journals
- Published
- 2009-02
- Volume
- 91
- Issue
- 1
- Pages
- 20-32
- ISSN
- 0034-6535 (ISSN-L)
- 1530-9142
- OpenAlex
- W3122725256
- Cited by
- 1,071
- References
- 85
- FWCI
- 112.43
- Type
- journal article
- Language
- en
- Open access
- bronze
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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.