- Learning-by-doing
Learning-by-doing is a
concept ofeconomic theory . It refers to the capability of workers to improve their productivity by regularly repeating the same type of action. The increasedproductivity is achieved through practice, self-perfection and minorinnovation s.The concept of learning-by-doing has been used by
Kenneth Arrow in his design ofendogenous growth theory to explain effects of innovation and technical change.Robert Lucas, Jr. (1988) adopted the concept to explain increasing returns to embodied human capital. Yang and Borland (1991) have shown learning-by-doing plays a role in the evolution of countries to greater specialisation in production. In both these cases, learning-by-doing and increasing returns provide an engine for long run growth.Recently, it has become a popular explaining concept in the
evolutionary economics and Resource-Based View (RBV) of the .Toyota Production System is known forKaizen , that is explicitly built upon learning-by-doing effects.
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