Dynamic Analysis of Innovation Systems: The IC Industry in Taiwan

Y.L. Lee (UK)


NIS (National Innovation System), IC (IntegratedCircuit), SD (System Dynamics), Simulation


This is claimed to be an era of knowledge-based economies; the knowledge developed in National Innovation Systems (NISs) is widely thought to have become crucial to science and technology development in leading economies. In order to enhance understanding of the structure and process of the NIS as well as the level and the rate of flows within an NIS, a system dynamics approach and computer simulations are applied in this research. This research will therefore centre on an attempt to develop a mathematical model of the national innovation system of Taiwan, particularly with regard to its IC industry. By means of questionnaire/in-depth interview and SD model simulation, the dynamic processes of the Taiwanese IC industry system of innovation are investigated. This allows deducing policy implications, in which simple assertions about, say, the impact of raising R&D spending are shown to be invalid.

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