35 Pages Posted: 17 Jul 2010
Date Written: July 12, 2010
In most technologies and most industries, experiments play a central role in organizational learning as a source of knowledge and as a check before changes are implemented. There are four primary types of experiments: controlled, natural, ad-hoc, and evolutionary operation. This paper discusses factors that affect learning by experimentation and how they influence learning rates. In some cases, new ways of experimenting can create an order of magnitude improvement in the rate of learning. On the other hand, some situations are inherently hard to run experiments on, and therefore learning remains slow until basic obstacles are solved. Examples of experimentation are discussed in four domains: product development, manufacturing, consumer marketing, and medical trials.
Keywords: Learning, Experimentation
JEL Classification: M10, O30
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