Learning by doing and learning curves in innovation. An examination of biotechnology patenting

Learning curve research indicates that productivity in manufacturing increases and unit costs decrease with cumulative firm experience. Unlike these routine production processes, the inputs used and the outputs produced vary from one innovation to the next. Given this, it may be expected that a learning curve would not characterize firm innovation activities. This research shows that a learning curve exists in innovation in the U.S. and Canadian biotechnology industry. Contrary to prior learning research, firm cumulative experience has no effect on productivity.