This study explores the effects of experiential learning on the cost of capability development. Drawing from historical data on patenting and licensing activities at the Wisconsin Alumni Research Foundation, we find evidence of a curvilinear relationship between experiential learning within a capability and the costs of developing the same capability. Our results also suggest that learning in a primary capability has a beneficial spillover effect on the development of complementary capabilities. However, at high levels of accumulated experience, we found that the primary capability has the potential to impede the deployment of related capabilities. The results of this study add to the dynamic capabilities, university technology transfer and science policy literatures.