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This study examines whether individuals, groups, and organizational units learn from experience in software development and whether this learning improves productivity. Although prior research has found the existence of learning curves in manufacturing and service industries, it is not clear whether learning curves also apply to knowledge work like software development. We evaluate the relative productivity impacts from accumulating specialized experience in a system, diversified experience in related and unrelated systems, and experience from working with others on modification requests (MRs) in a telecommunications firm, which uses an incremental software development methodology. Using multilevel modeling, we analyze extensive data archives covering more than 14 years of systems development work on a major telecommunications product dating from the beginning of its development process. Our …