Dynamics of innovation policies and ecosystems in Japan

Many public policies related to innovation have been implemented in Japan, especially focusing on promoting startups from universities, aiming at economic growth from technology. However, innovation ecosystem is complicated and dynamic that make difficult for policymakers to understand the system and evaluate policy effect. In this study, we analyze innovation ecosystem around a university and build a system dynamics model to have policy implications. We study the University of Tokyo and MIT, major universities for a large number of spin-off startups in each country, as cases of ecosystems. The study begins with policy and literature review of innovation and entrepreneurship, to understand present studies and policies. Next, stakeholders, system boundary, and causal relationships are analyzed to frame the system. Then, we build a system dynamics model of innovation ecosystem around a university. We included several causal loop structures in the model. For example, an Entrepreneur boom loop is a reinforcing loop which accelerates foundation of university spin-off startups and conversion of students to become entrepreneurial. A Risk capital depletion loop is a balancing loop which decelerates growth of startups when too many startups look for investment. Multiple loops and stakeholders interact closely in the systems, and the interrelated structures cause delay and side effects in simulation runs of our model. Results of the simulation infer policymakers need to consider combinations of policies rather than implement a single policy. Another interpretation from simulation runs is that patient policy implementation can lead to better outcomes because time delays in the loops make it difficult for policymakers to observe the effect of policies in the short term. Although additional data points are required for further calibration of the model, insights from this study and the model contribute to better understanding of innovation ecosystems around a university.

Department dc:contributor.department

Massachusetts Institute of Technology. Engineering and Management Program

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2017

Author dc:creator

• Nagura, Masaru

Advisor dc:contributor.advisor

• Bryan R. Moser.

• Engineering and Management Program.
• Integrated Design and Management Program.
• System Design and Management Program.

Statement dc:rights

• MIT theses are protected by copyright. They may be viewed, downloaded, or printed from this source but further reproduction or distribution in any format is prohibited without written permission.

Licence dc:rights.uri

• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

eng

Handle dc:identifier.uri

http://hdl.handle.net/1721.1/113522

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/113522