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Incumbents' Asymmetric Responses to Environmentally Friendly Entrants in the Automotive Industry

Uwe Cantner () and Josefine Diekhof
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Josefine Diekhof: DFG-GRK-1411 "The Economics of Innovative Change", PhD program of the Max Planck Institute of Economics & Friedrich-Schiller University Jena

No 2017-004, Jena Economic Research Papers from Friedrich-Schiller-University Jena

Abstract: The influence of innovative entrants on incumbents is considered important for technological change. We analyze this influence for the global transition towards alternative technology vehicles (ATVs). Our results indicate that entrants' ATV-related knowledge accumulation stimulates average incumbent's ATV-related research. Regarding global entrants, incumbents with higher ATV patent stocks increased patenting stronger; supporting previous literature on competitive reactions to entry. Responding to domestic entrants, however, incumbents with low ATV patent stocks increased whereas incumbents with high stocks decreased patenting; suggesting that advanced incumbents outsource research or overtake entrants. Further, certain characteristics and not merely the quantity of entrants drive incumbents' responses.

Keywords: Environmental Economics; Sustainable Development; Technological Innovation; Firm Behavior; Empirical Analysis; Entrepreneurship; Industry Dynamics; Automobile Industry; Electric Vehicle (search for similar items in EconPapers)
JEL-codes: Q01 Q55 Q59 D22 L26 L62 O3 O31 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-com, nep-ent, nep-ind, nep-ino, nep-tid and nep-tre
Date: 2017-03-10, Revised 2017-07-13
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