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This paper describes a comprehensive approach to examine how technological innovation contributes to the renewal of a firm’s competences through its dynamic and reciprocal relationship with R&D and product commercialization. Three theories of technology and innovation (the R&D and technological knowledge concept, product‐process concept, technological interdependence concept) are used to relate technology and innovation to strategic management. Based on these theories, this paper attempts to identify the dynamic relationship between product innovation and process innovation using system dynamics by investigating that aspect of the dynamic changes in the closed feedback circulation structure in which R&D investments drive the accumulation of technological knowledge.
Asian Journal on Quality – Emerald Publishing
Published: Dec 18, 2008
Keywords: R&D; Product innovation; Process innovation; System dynamics; Technological knowledge accumlation; Productivity; Customer satisfaction; Profit generation
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