The dynamics of innovation in networks: Analyzing product and technology process for market complexes

Dynamics of markets are even today not adequately represented in most market studies so that yet nowadays, wrong conclusions are quite common. A good tool for analyzing markets and its dynamic character is the coordination failure diagnostics concept (cfd-concept) which is based on the idea of control loops on the one hand and economic literature of competition on the other hand. Regarding innovations, it takes a closer look at product and technology progress which are core tasks to assure the survival of markets – or, to be exact, products. Nevertheless, even in this concept the direct influence of upand downstream markets was ignored so far, although it seems to be obvious that innovations stimulate new innovations itself – they might occur on the same or on related markets. First thoughts of analyzing market complexes with the help of cfd and system dynamics are to be introduced in this article.