In this article family businesses are viewed as value generator systems, where the value is created across generations, accumulated inside the firms and/or distributed to the familiesí members in accordance to the ownership structure (degree of fragmentation). The value is accumulated through the innovations implemented and it is eroded due to the innovation obsolescence. This process is affected by two variables: the psychological ownership shown by the shareholders and the dynamic capabilities generated by the knowledge-related human capital and by the social capital. The aim of the present research is to explore, extend and test the dynamics of the FITS model through computer simulations in system dynamics and provide new insights about the family business evolution across generations (90 year simulation - 3 genrations - are provided). Family governance and family ownership play a crucial role for the creation of value in family business. The two variables will be analysed and simulated in order to capture their effect on our model as a whole.