Title: Simulating the effects of radical innovation with the help of system dynamics

Authors: Samuli Kortelainen, Kalle Piirainen, Markku Tuominen

Addresses: Lappeenranta University of Technology, Skinnarilankatu 34, 53850, Lappeenrata, Finland. ' Lappeenranta University of Technology, Skinnarilankatu 34, 53850, Lappeenrata, Finland. ' Lappeenranta University of Technology, Skinnarilankatu 34, 53850, Lappeenrata, Finland

Abstract: Radical innovations pose a great challenge for strategic management. Innovation management has traditionally approached change with static methods relying on information on capabilities, strategy and markets. We introduce a system dynamics model to describe how learning changes the dynamics of innovation management. We use a post radical innovation environment to illustrate how the system reacts to different situations through the process of learning. As a result we propose two major propositions for future study that have not been addressed by past innovation management literature.

Keywords: radical innovation; profitability; dynamic capabilities; system dynamics; simulation; strategic management; entrepreneurship; innovation management; open innovation; collaboration.

DOI: 10.1504/IJEIM.2010.032268

International Journal of Entrepreneurship and Innovation Management, 2010 Vol.11 No.4, pp.457 - 476

Published online: 19 Mar 2010 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article