Abstract for: A system dynamics model of learning and innovation process profitability

In this paper we will introduce a system dynamic model that aims to identify the mechanisms how learning in innovation process converts to profit. This model is built on a single firm level from a strategic management approach. The model is built with modular structure that is in-line with different theoretical aspects that are covered with-in the simulation. In this research 3 main feedback loop groups are identified that offer different approaches in innovation process performance improvements for the manager. These options and their effects are evaluated with the help of the model and the initial data is presented in this paper.