Knowledge spillovers and absorption capacity: a model of technological learning

Using the phenomenon of learning-by-doing (LBD) as a conceptual base, the author develops a model of technological learning. Currently, knowledge generated from LBD is limited to within-product-generation effects. This conceptualization is extended by suggesting that knowledge from LBD spills over across functions, products, and product generations. Technological learning is viewed as a combination of technology-specific and firm-specific phenomena. It is argued that technological learning is the interactional outcome of knowledge spillovers (which are specific to a technology) and absorptive capacity (which is firm-specific). Thus, spillovers in conjunction with absorptive capacities result in differing rates of technological learning and thus differing levels of technological capabilities/knowledge. Implications for business strategy are briefly discussed