Innovation policy analysis and decision making: a systems approach

Abstract

The construction industry is one of the largest and most diverse of the sectors with continuous development. The momentum and impact of the industry's development is highly influenced by a complex system of different elements including innovation. However, the sector is relatively weak at all stages of the innovation process and the strength of collaboration among government, industry and academia is insufficient. It is generally accepted that construction companies invest less in new knowledge and process development as well as engage significantly less in innovation related activities than firms in other sectors. Hence, it is very important to control and manage the significant factors that affect success in innovation taking into account the complexity and the inherent dynamics of the construction innovation diffusion. By doing so, this study addresses the decision making process within the complex innovation process in the construction industry by employing a step-by-step modelling process consisting of a multi-stages analysis, stakeholder-based and modelling approaches. Construction is closely connected to the national social structure and is highly influenced by various institutional actors and interactions among components and, consequently, can be presented as a sectoral system. Hence, the overarching objective of the paper is to introduce a systems approach aiming to conceptualise and formulate an initial simulation model of a complex construction innovation system representing correct and continuous interactions between government, the construction industry and academia. Moreover, the research underpins future development of scenariogenerating modelling in order to reveal potential pathways to rational decision-making along with potential policy recommendations and various innovation planning strategies that improve construction innovation performance in the Russian Federation.