Firms often learn about their own capabilities through their products' successes and failures. This paper explores the interaction between learning about capabilities and product strategy in a formal model. We consider a firm that can launch a sequence of products, where each product's success...

In the modernisation of production processes, German and American firms stress different aspects: a greater number of German enterprises strategically favour technology and innovation and the adaptation of products to customers' specifications. The US firms prioritise more frequently the quality...