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The cost-quantity relations and the diverse patterns of "learning by doing": Evidence from India

Author

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  • Giovanni Dosi
  • Marco Grazzi
  • Nanditha Mathew
Abstract
"Learning-by-doing" is usually identified as a process whereby performance increases with experience in production. The paper investigates different patterns of "learning by doing", studying learning curves at product level in a catching-up country, India. Cost-quantity relationships differ a lot across products belonging to sectors with different "technological intensities". We find also, puzzlingly, in quite a few cases, that the relation price / cumulative quantities is increasing. We conjecture that this is in fact due to quality improvement and 'vertical' product differentiation. Circumstantial evidence rests on the ways differential learning patterns are affected by firm spending on research and capital investments. Finally, our evidence suggests that "learning", or performance improvement over time is not a just by-product of the mere repetition of the same production activities, as sometimes reported in previous studies, but rather it seems to be shaped by deliberate firm learning efforts.

Suggested Citation

  • Giovanni Dosi & Marco Grazzi & Nanditha Mathew, 2016. "The cost-quantity relations and the diverse patterns of "learning by doing": Evidence from India," LEM Papers Series 2016/26, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    • Handle: RePEc:ssa:lemwps:2016/26
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    4. Alhusen, Harm, 2020. "Experience-based know-how, learning and innovation in German SMEs: An explorative analysis of the role of know-how in different modes of innovation," ifh Working Papers 27/2020, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh).
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    8. Apetrei, Cristina I. & Strelkovskii, Nikita & Khabarov, Nikolay & Javalera Rincón, Valeria, 2024. "Improving the representation of smallholder farmers’ adaptive behaviour in agent-based models: Learning-by-doing and social learning," Ecological Modelling, Elsevier, vol. 489(C).
    9. Salvador Pueyo, 2019. "Limits to green growth and the dynamics of innovation," Papers 1904.09586, arXiv.org, revised May 2019.
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    More about this item

    Keywords

    Learning-by-doing; learning curves; product innovation; process innovation;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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