A management tool for innovation using systems thinking approach

This paper presents a model, which allows managers to identify the influence of their decisions to the potential innovation activity of the firm by simulation. Systems thinking methodology has been used to understand the framework of innovation systems and to design and run the simulation model. The model is based on two separate subsystems the `creative factory´ and the `supply availability´ that illustrate the internal and external framework of a firm. This paper however presents the sub-model that refers to the `creative factory´ and the managers´ decisions that affect the new product design and development process. Using this model a company can evaluate its ability to create new products and processes. The managers can test their decisions against the implications for the innovation activity of the firm and they can design scenarios that can sustain or enhance the production of new products and processes