Putting experience curves in context : links to and between technology development, market diffusion, learning mechanisms and systems innovation theory

As far as the experience curve approach goes, the focus is mainly on quantifying the cost reductions of the technological artefact (e.g. a wind turbine or biomass power plant) due to technological development. However, the experience curve by itself offers no explanation why costs should decline in the first place. As illustrated in the previous chapter, circumstances such as market developments, knowledge diffusion, sector and geographical system boundaries all can have an impact on (the applicability of) the experience curve approach. Yet, many studies (both historical and prospective) do not place experience curves in a broader context. In this chapter, we point out some issues of the experience curve approach from an innovation studies perspective; we take a look at how far theories on learning mechanisms and innovation systems can contribute to a better understanding of technological learning (and associated cost reductions); and we discuss whether and how these concepts could be used to complement the experience curve approach.