NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Innovation by Entrants and Incumbents

Daron Acemoglu, Dan Vu Cao

NBER Working Paper No. 16411
Issued in September 2010

---- Acknowledgements -----

We thank Sam Kortum, Erzo Luttmer, Ariel Pakes, and seminar participants at MIT and Toulouse

Network on Information Technology Conference at Seattle for useful comments. We are particularly grateful

to Xavier Gabaix for numerous useful suggestions at the early stages of this project. Financial support from

the Toulouse Network on Information Technology is gratefully acknowledged. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.

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