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

Author

Listed:
  • Uwe Cantner

    () (School of Economics and Business Administration, Friedrich-Schiller-University Jena)

  • Josefine Diekhof

    (DFG-GRK-1411 "The Economics of Innovative Change", PhD program of the Max Planck Institute of Economics & 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.

Suggested Citation

  • Uwe Cantner & Josefine Diekhof, 2017. "Incumbents' Asymmetric Responses to Environmentally Friendly Entrants in the Automotive Industry," Jena Economic Research Papers 2017-004, Friedrich-Schiller-University Jena, revised 13 Jul 2017.
  • Handle: RePEc:jrp:jrpwrp:2017-004
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    References listed on IDEAS

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    Keywords

    Environmental Economics; Sustainable Development; Technological Innovation; Firm Behavior; Empirical Analysis; Entrepreneurship; Industry Dynamics; Automobile Industry; Electric Vehicle;

    JEL classification:

    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q59 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Other
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • 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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