Proposing Dynamic Model of Functional Interactions of IoT Technological Innovation System by Using System Dynamics and Fuzzy DEMATEL

TL;DR

This paper develops a dynamic model of IoT technological innovation interactions using system dynamics and fuzzy DEMATEL to aid policymakers in strategic decision-making for IoT development.

Contribution

It introduces a novel integrated approach combining system dynamics and fuzzy DEMATEL to model the functional interactions in IoT innovation systems.

Findings

Market formation and policymaking have the most direct influence on other functions.

Resource mobilization and entrepreneurial activities have the highest total impact.

The model assists policymakers in prioritizing factors for IoT development.

Abstract

One of the emerging technologies, which is expected to have tremendous effects on community development, is the Internet of Things technology. Given the prospects for this technology and the country's efforts to its development, policymaking for this technology is very crucial. The technological innovation system is one of the most important dynamic approaches in the field of modern technology policy. In this approach, by analyzing various functions which are influencing the development of a technology, the proper path to technological advancement is explained. For this reason, 10 major factors influencing the development of emerging technologies have been identified based on previous studies in this area and the effect of ten factors on each other was identified by using the system dynamics and the fuzzy DEMATEL method and the interactions between these functions were modeled. Market formation, resource mobilization, exploitation of the regime and policymaking and coordination functions have the most direct effect on the other functions. Also, policymaking and coordination, market formation, entrepreneurial activities, creating structure and resource mobilization have the most total impact on the other functions. Regard to resource constraint in the system, the policy makers should focus on those factors which have the most direct and total impact on the others that in this research are market formation, entrepreneurial activities, resource mobilization and policymaking and coordination. Given the dynamic nature of technology development, this model can help policymakers in the decision making process for the development of the Internet of Things.