Compared to knowledge generation between producers and suppliers/buyers, horizontal learning is
based on non-traded relations, organized through different mechanisms. This chapter explains how
knowledge sharing among competitors can be a rational choice for firms in specific settings. To
demystify horizontal learning, four processes of knowledge exchange among competing agents and
organizations are discussed, namely socially embedded learning, labor mobility, interaction and
monitoring, and collective invention. It is suggested that horizontal learning can be a common
practice within many knowledge communities, especially in the early stages of innovation processes
when dominant designs and technologies are unclear.
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