In this paper we reflect on effective research strategies for building helpful system dynamics models on induced technology change that are substantiated in the relevant literature and empirical data sources. The paper positions the innovation system literature within the overall field of induced technology change as a distinct systemic approach that offer relevant conceptual starting points for a system dynamics modeling experiment on induced technology change analyses. Innovation system research is interested in identifying the processes underlying innovation, industrial transformation and economic growth. Also, the interest in the functional dynamics of innovation systems creates an opportunity for system dynamics researchers that are applying a scholarly developed modeling approach aiming to identify the structure and processes that explain behavior patterns of induced technology change.
We provide a system dynamics implementation of an important ecological economics model. Such models are typically constrained to use functions chosen conveniently to allow for analytic solution, such as the Cobb-Douglas function. This function however has the undesirable attribute that the elasticity of substitution is one. Fixed elasticity does not allow for the substitutability between man-made capital and natural capital to change, which is vital for economic sustainability.
This paper studies the effect of R&D consortia policy and the consequences of the policy implementation process on technology spillover through Foreign Direct Investment (FDI) in Thailand using a system dynamics method. The results show that the R&D consortia policy increases the level of technology spillover and improves the economy of Thailand by boosting the productivity and GDP per capita of Thailand. The R&D consortia policy also amplifies the level of FDI which adds up to the productivity growth. When considering the policy implementation process, shortening the implementation time significantly increases the benefits in the short run but in the long run the additional benefits from shortening the implementation duration diminished. The FDI signaling effect reduces the benefits of the policy. However, when accounting for the signaling effect, Thailand is still better off if the R&D consortia policy is implemented.
Most business organisations attach great importance on intellectual property and knowledge today, because the property and knowledge are considered as source of competitiveness. In order to protect them, businesses have tried to control the source of intellectual property and knowledge, to say engineers and knowledge workers. This has been working well to enable the businesses to be competitive especially in manufacturing companies and IT companies in early days. The environment around businesses especially in information communication technology and service industries is now changed. Since needs of customers, government regulations and market environments are changing rapidly, knowledge and skills of engineers and knowledge workers need to be quickly updated. Falling behind competitors can lead to withdraw from the market. Nevertheless, businesses seem to continue their protective control on their personnel in old style. This can eventually cause not only lowering workers condition but also aggravated result of businesses because of obsoleteness of knowledge and loss of competitiveness. In order to examine this possibility, this paper shows simulation model based on existing research concerning employment and knowledge management. The result of simulation suggests overprotective policy would reduce businesses competitiveness and protecting knowledge workers job choice supports their companies development.
According to the Global Terrorism Database, Asia was the continent that suffers the highest number of terrorist attacks and the highest number of casualties during the period 1998-2007. One of the numerous terrorist organizations operating on its territory is Lashkar e Taiba (LeT) that was created in 1999. From its inception to 2007, it has staged ninety attacks generating 1,945 casualties. This paper presents a system dynamics model to try to reproduce the number of monthly incidents of that organization. The construction is carried out adapting to the organization those feedback processes that explain the survival over time of a terrorist organization. Comparing the data series and the data obtained by simulation, the paper examines the degree in which the model reproduces the incidents of the organization. After checking the usefulness of the model, different counter terrorist measures are tested in order to assess their effectiveness.
Evidence shows that the paths of growth followed by different countries are diverse. While some countries present a fast growth, other countries show a moderate or even, a slight growth. The first behavior could be justified by means of positive feedback loops that provoke strong accumulations while the second one could be explained through interrelationships of positive and negative feedback loops. To generate process of growth, this paper constructs a system dynamics model considering a causal structure that gathers decisions of consumers, firms and a government in an economy. A simulation exercise obtains different paths of growth taking into account both different governmental strategies and boom and bust cycles. Due to the possibilities that the model offers different political aspects tied to governmental strategies, such as distribution of wealth, degree of corruption or level of education, are examined.
Construction branch forecasting model allows estimate the industry development problems. The main attention is turned to the living area construction. The model consists of several sub-models: amount of apartments, real estate prices, needs for apartments and living area forecasting models. The apartments amount forecasting model bases on principle if there is insufficient number of apartments in the economic system, then, first of all, apartments with small areas are financed and constructed, i.e., multistory buildings with one-room apartments. The increase of apartments amount depends on the financing that is intended for construction, as well as from the average apartment area and construction costs per square meter, in other words, from funding and construction costs. The real estate prices influential parameters are the increase or decrease of the housing fund, the total apartment market influence on separate segments in apartment market (and vice versa). The apartments needs influential factors there are an increase of apartments amount; depreciation of apartments (reduction of amount); improvement of living conditions. In paper shown, that in Latvia the balanced amount of apartment construction is approximately 1800 apartments per the year, but considering the fluctuations of surplus and needs, it can temporarily fluctuate from 1434 to 2019.