System dynamics and learning: Learning during the product realization chain

Global market competition and consumer attitudes, demand a constant flow of new products in the market. Product lifecycles shrink and consequently the pressure for novel products that rapidly pass from the R&D lab to the consumer hands is increased, especially for high-technology firms. This requires particularly high rates of learning allowing firms to develop new products faster and adapt quickly to market changes. This paper addresses a gap in the learning literature, presenting an integrative model for learning during the whole process of new product development, from concept design to actual manufacturing. Higher order learning dynamics, occurring during the product realization chain (product design, process modeling, process execution) are combined with the learning curve theory, in order to present an innovative view of learning that facilitates the modeling of this complex process through control theory.