@techreport{Czarnitzki2008Effect,
abstract = {We develop a simple model of competition for the market that shows that, contrary to the Arrow view, endogenous entry threat in a market induces the average firm to invest less in R&D and the incumbent leader to invest more. We test these predictions with a Tobit model based on a unique dataset and survey for the German manufacturing sector (the Mannheim Innovation Panel). We confirm the empirical validity of our predictions and perform a number of robustness test with instrumental variables.},
address = {Mannheim},
author = {Dirk Czarnitzki and Federico Gabriele Etro and Kornelius Kraft},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {O32; O31; 330; R&D; Entry; Endogenous market structures; Leadership; Forschung; Industrielle Forschung; Investition; Markteintritt; Potenzieller Wettbewerb; Theorie; Deutschland},
language = {eng},
number = {08-078},
publisher = {Zentrum f\"{u}r Europ\"{a}ische Wirtschaftsforschung (ZEW)},
title = {The Effect of Entry on R&D Investment of Leaders: Theory and Empirical Evidence},
type = {ZEW Discussion Papers},
url = {http://hdl.handle.net/10419/27556},
year = {2008}
}
