LEARNING AS A DYNAMIC CAPABILITY THAT INFLUENCES INNOVATION IN ORGANIZATIONSKarina KenkIntroductionLearning is a multilayered and multidimensional construct (Nonaka 1994; Zollo and Winter2002). Learning can be individual or collective (Huber 1991) relying on multiple sources of knowledge (Malerba 1992). Learning and innovation are related constructs, if we consider how they are defined in the literature. Nonaka (1994: 14) understood innovation as “a process in which the organization creates and defines problems and then actively develops new knowledge to solve them”. Huber (1991: 89) adopts a behavioral perspective on learning, arguing that “An entity learns if, through the processing of information, the range of its potential behaviors is changed.” In other words, both learning and innovation are linked to the processing of information and the development of new knowledge. In the literature on dynamic capabilities (DC) and innovation, learning is an often mentioned construct (Teece et al1997). By analyzing the literature on learning and innovation, we try to answer the following research questions: • What is the role of organizational learning in the development of dynamic capabilities? • How does individual learning transform into organizational learning and what are the factors that facilitate organizational learning? • How does learning contribute to innovation performance and consequently to company performance? The rest of the paper is organized as follows: first an overview of the relationships between learning and dynamic capabilities is provided. We then examine some of the microfoundations for learning and the factors that contribute to organizational learning. Third, an overview of empirical studies investigating the relationship… half of the article… national learning includes some information content, a learning product (information, know-how or understanding), a learning process which consists of acquiring, processing and storing information and a learner to whom the learning process is attributed”. Therefore Nonaka (1994) emphasizes on the one hand the role of informal communities for social interaction and on the other hand formal arrangements for knowledge construction in the organizational learning process. Malerba (1992) advances the following propositions regarding learning: • learning is a costly and targeted process that occurs within the company; • learning is linked to different sources of knowledge which can be internal or external to the company; the company; • learning is cumulative and increases the knowledge base of companies; • the specific knowledge base of companies mainly generates local and incremental resources