Abstract for: Innovation Dynamics in High Tech Sectors

Firms innovate through complex and dynamic interactions with other knowledge agents forming an Innovation System. There is extant literature on the linkages between such agents however most previous studies have not taken into account its dynamic properties. This work aims to improve the understanding of the dynamic behavior of a sector as a result of innovative activities by designing a system dynamics model. A new framework, which includes the essential components and linkages of an innovation system is used and instantiated for the case of the Software Sector in Brazil and formalized through the use of a system dynamics model, using data from the Brazilian Innovation Survey (PINTEC) and previous literature. This research provides explanations of how internal components of a sectoral innovation system interact and, through the model, demonstrates the dynamics of the system by performing punctual experiments.