A Systematic Review of Factors and Mechanisms Affecting Technological Innovation from a System Dynamics Perspective: Research Synthesis and the Development of a Conceptual Framework

Abstract

Objective: This study aimed to systematically identify and synthesize the factors and mechanisms affecting technological innovation from a system dynamics perspective and to develop an integrated conceptual framework based on causal relationships, feedback loops, and time delays.

Methodology: This study employed a systematic review design, qualitative synthesis, and a system dynamics approach. The research population comprised Persian- and English-language studies published between 2010 and 2025 on technological innovation, innovation capability, technology development, research and development, and innovation ecosystems. Major international and Persian databases were systematically searched. Of the 1,847 records initially identified, 42 studies were included in the final synthesis after duplicate removal, title and abstract screening, full-text assessment, and methodological quality appraisal. Data were collected using a researcher-developed extraction form and analyzed through thematic synthesis, directed content analysis, and the identification of causal relationships, feedback structures, and temporal delays.

Findings: The synthesis indicated that technological resources and investment, human capital, absorptive capacity and knowledge management, dynamic capabilities, managerial support, innovation culture, collaborative networks, market conditions, institutional support, digital infrastructure, and commercialization capability were the principal determinants of technological innovation. The analysis further indicated that the effects of research and development investment were largely transmitted through absorptive capacity, organizational learning, dynamic capabilities, and commercialization processes. Seven reinforcing feedback loops, six balancing feedback loops, and three major time delays were identified. Market success, knowledge accumulation, skill development, and network trust activated reinforcing processes, whereas resource limitations, technological complexity, excessive competition, and pressure for short-term returns constrained the growth of innovation.

Conclusion: Technological innovation is a dynamic, multilevel, and path-dependent phenomenon emerging from interactions among resources, organizational capabilities, environmental conditions, and feedback mechanisms. Sustainable innovation requires coordinated interventions in human capital, learning systems, technological infrastructure, collaborative networks, institutional support, and commercialization capacity. Increasing research and development expenditure alone is therefore insufficient to produce sustained innovative performance.