A Simulation Model of Technology Innovation of a Territory

The technology innovation of a territory is considered as the result of R&D activity. This view represents the basis for statistical studies of innovation guidelines. However, studies on technology dynamics have shown that technology innovation is also the result of organizations, other than R&D, such as the startup-venture capital or the industrial platform systems, which differ in terms of financial strategies or generation of knowledge. In this paper, we develop a mathematical simulation model of a technology innovation of a territory in which all these three organizations are operating by calculating the number of developed successful technologies, which are considered as triggers of the economic growth. The results show that both startups and industrial platforms boost the formation of successful technologies compared to industrial R&D activity only. Due to the uncertainty of the parameters used, this model is just a rough representation of the reality. However, it presents a detailed description of the processes of generation, use of knowledge, and new technologies’ development. Regardless of industrial or economic factors, this model is still valid for any industrial or economic situation. Its descriptions and results may be useful in R&D and technology management as well as in statistical studies for the innovation policies of a territory.