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Do entrants increase incumbents' innovation activity? Escaping the lock-in, stimulating technological change and the transition towards environmentally friendly vehicles

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  • Josefine Diekhof

Abstract

In the context of technological transitions, the influence of innovative entrants on incumbents is a major driving force. Using worldwide patent data, the present study analyzes this influence for the case of the transition from combustion engine vehicles towards electrically powered alternative technology vehicles (ATVs). Lateral entrants and start-ups play a key role in developing ATV-related patents, whereas automotive incumbents are considered as being less motivated in pursuing this new technology. The empirical results indicate that innovative entrants have an influence on incumbents? innovation activities, and also underline the importance of cross-country entry. The findings further suggest that entrants stimulate ATV-related innovations in those incumbents that show low ATV-related patent productivity whereas incumbents with high ATV-related patent productivity react with a decrease in ATV-related patenting, which is assumed to be a sign of outsourcing research and development activities. JEL Codes: Q550, O3, Q520, R490, L910, L260, O310

Suggested Citation

  • Josefine Diekhof, 2015. "Do entrants increase incumbents' innovation activity? Escaping the lock-in, stimulating technological change and the transition towards environmentally friendly vehicles," Journal of Innovation Economics, De Boeck Université, vol. 0(1), pages 101-137.
    • Handle: RePEc:cai:jiedbu:jie_016_0101
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    Cited by:

    1. Diekhof, Josefine & Cantner, Uwe, 2017. "Incumbents' responses to innovative entrants: A multi-country dynamic analysis," ZEW Discussion Papers 17-052, ZEW - Leibniz Centre for European Economic Research.
    2. Konstantinos Poulis & Gregorios C. Galanakis & Gregory T. Triantafillou & Efthimios Poulis, 2020. "Value migration: digitalization of shipping as a mechanism of industry dethronement," Journal of Shipping and Trade, Springer, vol. 5(1), pages 1-18, December.
    3. Uwe Cantner & Josefine Diekhof, 2017. "Incumbents' Asymmetric Responses to Environmentally Friendly Entrants in the Automotive Industry," Jena Economics Research Papers 2017-004, Friedrich-Schiller-University Jena, revised 13 Jul 2017.

    More about this item

    Keywords

    Environmental Economics; Technological Innovation; Technological Change; Industry Dynamics; Entrepreneurship; Transport Industry; Electric Vehicles;
    All these keywords.

    JEL classification:

    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • R49 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Other
    • L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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