To explore innovation synergy rule & its effectiveness by SD modeling in portfolio perspective — Study on innovation capacity evolution rule

Abstract

The current business context is more and more characterized by innovation capability as a key factor to boost firm's competiveness. Chinese firms are devoting its actions to develop science and technology to innovate their success. Inspired by synergetics and portfolio innovation, we propose that innovation synergy is an important means to reconfigure competencies and reduce the resource deficiency in order to exploit competitive advantage and success. System dynamics is an insightful approach to the problem structuring to investigate and illuminate the synergy effectiveness of innovation. We establish a SD model of a new venture in China to explore the synergy effect from the interaction of different innovation elements. Results show that as technology market, culture, and process innovation input increase, firm could fully exploit the benefits of innovation synergy and favor its growth and success.