A trade-off analysis of strategic technological innovation capabilities in industrial research organizations

In this system dynamics simulation study, we analyze a set of feedback causal relationships of technological innovation in industrial research organizations. Technological innovation includes product and process innovation, but an organization cannot develop each independently because due to the trade-offs between product and process innovation, over- or underdevelopment of one leads to harm to the system objectives. Since technological innovation is achieved through feedback relationships between product and process innovations, how do the trade-off relationships between product and process innovations change over time when market demands for innovative products are continuously increasing? In fact, for the most optimal profitability of a technological innovation system, both product and process innovations should be integrated and modeled together in a single picture so that their trade-off relationships are adjusted in a way that best results in the greatest increase in profit. This study examines strategic innovation policies versus product complexity and shows that a new paradigm in which product and process innovations are pursued in a correlated manner rather than sequentially can ensure the sustainable growth of industrial research organizations.

کلیدواژه ها:

product and process ، strategic technological innovation capabilities ، dynamic systems