Innovative capability, the knowledge a firm uses to innovate, is an input into and an output of the process of innovation. In this paper, I put forward the notion that innovative capability, like experience in production, accumulates by learning by doing and that innovation is characterized by a learning curve. Using patent data from the U.S. and Canadian biotechnology industry from 1970 to 2007 for 20,886 scientists working 611 biotechnology firms, I estimate a learning curve in innovation and determine the loci of innovative capability. Innovative capability resides in the individual, team and firm loci where it accumulates. Empirical results suggest that the individual is the primary locus of innovative capability and that team experience has a secondary influence on productivity. Contrary to prior learning curve research, accumulated firm experience has no direct influence on productivity. However, when individuals possess relevant domain knowledge and have experie.