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Leapfrogging: Time of Entry and Firm Productivity

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  • Götz, Georg
  • Ederington, Josh

Abstract

We develop a model in which ex ante identical firms make endogenous entry and technology adoption decisions. We show that this model is capable of matching the stylized facts in which entry is dispersed over time and that, in many industries, it is the newest firms which are the most likely to exhibit high productivity growth and adopt new innovations (i.e., leapfrogging). We then derive the characteristics of those industries where such leapfrogging is likely to occur.

Suggested Citation

  • Götz, Georg & Ederington, Josh, 2017. "Leapfrogging: Time of Entry and Firm Productivity," VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168126, Verein für Socialpolitik / German Economic Association.
  • Handle: RePEc:zbw:vfsc17:168126
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

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