Lecture13.1

Question 1

What are the learning mechanisms underlying technological learning?

Answer 1

Learning Mechanisms:
- Learning-by-doing: in the production process
- Learning-by-searching: due to R&D
- Learning-by-using: due to customer feedback
- Learning-by-interacting: due to network interaction
- Up-/downsizing or redesigning: changes in size/design
- Economies of scale: due to mass production

Question 2

What is the experience curve?

Answer 2

Experience Curve: Relation between total technology cost per unit and cumulative output, linear on a log-log scale.

Question 3

What is the learning rate?

Answer 3

Learning Rate: Constant rate of cost reduction with every doubling of cumulative output.

Question 4

How is the learning rate calculated?

Answer 4

Learning Rate Calculation:
- Formula: LR = 1 - PR
- PR: Progress Ratio = 2<sup>-b</sup>
- b: Learning index (represents rate of cost reduction when doubling output).

Question 5

What are the key outcomes of technological learning?

Answer 5

Key Outcomes:
- Cost reductions result from various learning processes.
- Experience Curve = Relationship between technology cost and cumulative output.

Question 6

Why is the experience curve important?

Answer 6

Importance:
- High value for companies and policymakers to predict cost reductions.