Innovation system policy analysis through system dynamics modelling: A systematic review

Abstract In this article, we conduct a systematic literature review of past system dynamics (SD) simulation models of innovation systems (IS). By systematically reviewing fifty-four studies we present the current state-of-the-art of SD modelling applications in the IS domain. Our main results show there are four main IS policy areas where SD have been used, namely: (1) R&D policies, (2) innovation diffusion policies, (3) science and technology policies, and (4) regional agglomeration policies. Most of the studies have explored assumptions, hypotheses, and policy at the conceptual/theoretical level and can be characterized to be mostly exploratory modelling tools. We conclude by reflecting on theoretical and policy implications of these studies.