Encyclopedia of Complexity and Systems Science

2009 Edition
| Editors: Robert A. Meyers (Editor-in-Chief)

Diffusion of Innovations, System Dynamics Analysis of the

  • Peter M. Milling
  • Frank H. Maier
Reference work entry
DOI: https://doi.org/10.1007/978-0-387-30440-3_124

Definition of the Subject

The article describes how system dynamics‐based models can contribute to the understanding and improved management of the diffusion ofinnovations . It emphasizes the importance of an integrated feedback‐oriented view of the different stages of innovation processes. The aim is togenerate insight in the complexity and the dynamics of innovation processes. Based on the classical Bass model of innovation diffusion, the system dynamicsperspective is introduced. In a systematic approach several structures to model the complexity and dynamics of managerial decision-making in thecontext of the diffusion of innovation are described and analyzed. Aspects covered consider market structure, network externalities, dynamic pricing,manufacturing related decisions and the link between research and development and the diffusion of a new product in the market place. The articleconcludes with managerial implications.

Introduction

Continuous activities to renew a company's range...

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Copyright information

© Springer-Verlag 2009

Authors and Affiliations

  • Peter M. Milling
    • 1
  • Frank H. Maier
    • 2
  1. 1.Industrieseminar der Universität MannheimMannheim UniversityMannheimGermany
  2. 2.International University in GermanyBruchsalGermany