System Dynamics and Innovation: A complex problem with multiple levels of analysis

System Dynamicists employ two principles to modelling different problems: feedback processes and stock and flows. Innovation processes can be observed and modelled at diverse level of analysis: industry, product, organization and processes. Each of these levels implies observing innovation problems with different theoretical lenses although they are strongly interrelated. This papers presents a review of the approaches followed by diverse practitioners on the use of System Dynamics in innovation. The initial evaluation of the literature suggests that system dynamicists have not followed system hierarchical principles to model innovation processes. Consequently, the results from one level, e.g. innovation processes, cannot be directly translated into the level above, e.g. industry dynamics. Future directions are suggested.