caa a22 4500 445877375 CHVBK 20180317145531.0 cr unu---uuuuu 170323e20110401xx s 000 0 eng 10.1007/s11187-009-9219-1 doi (NATIONALLICENCE)springer-10.1007/s11187-009-9219-1 Incumbent innovation and domestic entry [Elektronische Daten] [Oliver Falck, Stephan Heblich, Stefan Kipar] 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 an instrumental variable approach to analyze a rich firm-level dataset (1987-2000) for Germany. We find evidence that domestic entry has a negative effect on incumbent product innovation, which is a strong indication of new entrants' comparative advantage in commercializing new ideas. In contrast, domestic entry has a positive effect on incumbent process innovations, an effect also known as the escape-entry effect. The Author(s), 2009 Entry nationallicence Process innovation nationallicence Product innovation nationallicence Falck Oliver Ifo Institute for Economic Research, Poschingerstr. 5, 81679, Munich, Germany aut Heblich Stephan Max Planck Institute of Economics, Kahlaische Strasse 10, 07745, Jena, Germany aut Kipar Stefan Ifo Institute for Economic Research, Poschingerstr. 5, 81679, Munich, Germany aut Small Business Economics Springer US; http://www.springer-ny.com 36/3(2011-04-01), 271-279 0921-898X 36:3<271 2011 36 11187 https://doi.org/10.1007/s11187-009-9219-1 text/html Onlinezugriff via DOI 1 research-article jats NATIONALLICENCE 856 40 https://doi.org/10.1007/s11187-009-9219-1 text/html Onlinezugriff via DOI NATIONALLICENCE 700 1- Falck Oliver Ifo Institute for Economic Research, Poschingerstr. 5, 81679, Munich, Germany aut NATIONALLICENCE 700 1- Heblich Stephan Max Planck Institute of Economics, Kahlaische Strasse 10, 07745, Jena, Germany aut NATIONALLICENCE 700 1- Kipar Stefan Ifo Institute for Economic Research, Poschingerstr. 5, 81679, Munich, Germany aut NATIONALLICENCE 773 0- Small Business Economics Springer US; http://www.springer-ny.com 36/3(2011-04-01), 271-279 0921-898X 36:3<271 2011 36 11187 Metadata rights reserved Springer special CC-BY-NC licence nationallicence BK010053 XK010053 XK010000 NATIONALLICENCE NATIONALLICENCE NL-springer