LEARNING WHILE INNOVATING

This paper examines processes of trial-and-error learning during the development of a technological innovation by an interorganizational joint venture created expressly for developing and commercializing products from the new technology. We develop a model of adaptive learning, which incorporates elements from laboratory models of learning and applies them to the field research setting. The learning model focuses on relationships between the goals, actions, and outcomes of an innovation team within the joint venture as it develops the innovation over time, and the influences that environmental events and external interventions by resource controllers in parent companies have on the learning process. The model is tested based on a real-time longitudinal study of the development of a biomedical innovation (therapeutic apheresis) from 1983 to 1988. Different patterns of learning were observed in different periods of innovation development. Event time series analyses clearly contradict the learning model during an initial expansion period, but strongly support the model during a subsequent contraction period. Explanations for why these different patterns of organizational learning occurred over time are provided, and focus on a set of organizational structures and practices which are commonly used to manage innovation development, but which inhibit learning.