Analysis on Innovation Process of Manufacturing Enterprises Based on System Dynamics

Innovation is one of the key sources of sustainable competitiveness.For manufacturing enterprises,innovation is not just limited to product innovation.According to the actual situation of manufacturing industry in China,process innovation is a more realistic form of innovation in manufacturing enterprises,which has not attracted enough attention from academia.Since the innovation process is a nonlinear dynamic system,it is appropriate using system dynamics to reveal the internal mechanism and the overall appearance of enterprise innovation.In this paper,the interrelationship of every single plate has been stated,and based on them,the causality diagram is constructed to demonstrate the relationship between product innovation and process innovation,as well as the important roles they played in the operation practice.