Tag: Experience Curve

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Economics Innovation Learning

Breaking with Experience

Innovation involves breaking with the past to create something even more remarkable (Source: Flickr) THE traditional Experience Curve focuses on increasing production experience which leads to predictable cost reductions. This kind of experience is relevant in industries that are relatively stable, competitive, and production-intensive. (Source: Wikipedia) But what about high tech and creative industries where the lifecycle […]

Categories
Economics Learning

Experience Curve

The Experience Curve captures the relationship between increasing production experience and declining costs (Source: Flickr) Background The Learning Curve, the concept which predates the Experience Curve, was first described by German psychologist Hermann Ebbinghaus in 1885 as part of his studies into human memory. In 1936, T.P. Wright described the effect of learning on production […]