Learning Curve and Technology Levels of New Firms in Iranian Manufacturing Industries

In industrial economics literature, the relationship between production quantity and production costs can be expressed as “learning curve”. Based on the existing literature on the learning curve, learning is not uniform across industries and besides that, can be influenced by other factors such as technology .Accordingly, due to the lack of such studies in Iran, the present research attempts to examine the impact of different levels of technology on learning in Iran's manufacturing industries. For this purpose, the Log-Linear model and the Cobb Douglas cost function are combined and the OECD definition of industries classification in terms of technology levels is used. The findings indicate that the highest level of learning belongs to the High-Tech industries and from policy- making point of view, attending to these industries is necessary. Furthermore, the higher learning rates in the mentioned industries are able to cover some of their initial costs. In conclusion, attending to learning is required for industrial development policy- making.