Synergy of innovation elements and evolution of innovative capability — With system dynamics modeling

Abstract

In a globalized era of knowledge economy, innovative resources integrate and allocate in a broader context. Development of innovative capability is vital to firm's competitive success in such complex and dynamic context. However, enterprise innovative capability building is still weak in China. Total innovation management highlights the effectiveness of the elements collaboration and resource allocation to innovative capability leveraging & superior performance. To prove that, this paper established a system dynamics model to explore the relationship between innovation element synergy and innovative capability evolution. Some brief conclusions can be drawn as follows: Firstly, synergy between technological & marketing innovation is of great significance to internalization of introduced technologies and resources. Secondly, organizational arrangements could push this internalized capability to integrated innovation capability and competence. Finally, reasonable strategy and innovative culture could boost sustainable innovation and make integrated innovation capability evolved and finally reached into original innovation capability.