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Residual quantization (RQ) is one such method, which iteratively quantizes the error of the previous step. While the error distribution is dependent on previously-selected codewords, this dependency is not accounted for in conventional RQ as it uses a fixed codebook per quantization step. In this paper, we propose QINCo, a neural RQ variant that constructs specialized codebooks per step that depend on the approximation of the vector from previous steps. Experiments show that QINCo outperforms state-of-the-art methods by a large margin on several datasets and code sizes. 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