Philosophical Insights in System Modelling

Philosophical Insights in System Modelling
: Application to the Field of Innovation Systems

Key words: system dynamics, philosophy, mental model, regional innovation system

UngKyu Han
Dr. Martin Kunc

5th April 2011
YOR Conference, Nottingham University

(1/16) UKHan
System Dynamics UngKyu Han

CONTENTS

1. To Be Thought

2. Background

3. Philosophy, Mental Model, and System Dynamics

4. Previous Investigations

5. Applied to Innovation Systems

6. Conclusions

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1. TO BE THOUGHT
“How should we observe systems?”

“Is the Earth central? or part of the solar system?”

To argue the need to establish a dualistic philosophical view of a
system in system dynamics modelling

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2. BACKGROUND
1) System Dynamics
(1) Modern SD initiatives
- Industrial Dynamics written by J. Forrester (1961)
- Ranging from pure sciences to social sciences, and from mathematical
areas to non-mathematical ones

(2) Intends to…
- Discover the internal interactions and feedback processes that take
place between diverse constituent factors within complex systems
- Look into how changes in such elements cause expected or unexpected
consequences within the systems modelled

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2) Is System Dynamics a Tool, a Methodology, or a Paradigm?

Graphical interface, modelling, computer
simulation and application software

Paradigm in problem-solving areas of
management sciences

“Without a clearly communicated philosophy, there is nothing to separate
the subject from the simulation technique it uses.”, Morecroft (1983) says.

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3. PHILOSOPHY, MENTAL MODEL AND SD
1) What is philosophy?
- A Greek ‘Philosophia’
- ‘Love of wisdom’: subjective thoughts of human beings.

2) Are Scientists Objective?
- Not ‘unbiased observers’; rather, fallible beings
- Scientific ‘observations’ cannot be totally neutral

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3) Mental Model

“Beauty is in the eye of the beholder.”

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4) Mental Model in System Dynamics
In dealing with feedback problems within a system

(1) In defining feedback problems

(2) In analysing feedback problems

(3) In interpreting feedback problems

(4) In solving feedback problems

∴For System Dynamicists
In the process of systemic problem generation, philosophical thinking
is necessary in the description of internal behaviours within a system.

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4. PREVIOUS INVESTIGATIONS

Constructivism
Vázquez and Liz, 2007 Schiere et al., 1999

Expressivism Reductionism

Rafferty, 2007
Holism

Schwaninger, 2006
Interpretivism Positivism

- WHY NOT Synthetic Dualism of Philosophies?

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3) Perception of a System by Philosophy
PHILOSOPHY Constructivism, Interpretivism , Synthetic view Reductionism and Positivism
Holism, and Expressivism
CRITERION
A whole- or sub-system (s)
Main Object A whole system Constituent elements

Top-down or bottom-up
Logical Stream Top-down Bottom-up

More than or just the sum of parts
System Definition More than the sum of parts Just the sum of parts

A whole- or sub-problems of a
Problem Definition A whole problem of a system Sub-problems of elements
system
Non-common or common goals
Goal Definition No common goal Common goals of components
of sub-systems

Variant or static context and
Context and Observer Variant context and observer Static context and observer
observer
Variability

Sensitivity to Changes Sensitive to the changes in internal Sensitive or non-sensitive to Not sensitive to the changes in
changes of internal properties in
properties internal properties
a system

Interpretation Flexible, inferential, pragmatic, and Flexible or inflexible, inferential or Inflexible, concrete, ideal, and non-
concrete, pragmatic or ideal, and
Flexibility contextual contextual
contextual or contextual

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5. Applied to Innovation Systems
1) Innovation System
: An agglomeration of innovation actors to stimulate their
innovation and business within a geographical area

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2) From National to Regional Innovation System
National Innovation System Regional Innovation System

NIS's World-wide Clearer Management of
Spread Relative Dynamics by
Region
Japan’s Economic Serious Disparities
Growth among Regions Need for Institutionally
Localised
Technology-based Systems
Nation-wide
US Support Business Support
The Rise of EU
in 1993
Japanese Government
Economic European Currency
Interventionism into EURO in 1995
1945 1953 1960 1970 1980 1990 2000 now

End of Korean War Shift from NIS to RIS
End of the 2nd World War

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3) Features of Innovation System
- Evolutionary being
- Continuous production of feedback problems

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4) Philosophy-Mental Model-Views of a System

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Region-oriented View Region-Nation Synthetic View Nation-oriented View
Philosophy Constructivism, interpretivism, Dualism of philosophical threads Reductionism and positivism
holism, and expressivism
Main Object RIS as a whole system Different observing target by context A nation-dependent constituent unit
around a region
Logical Stream Local government’s top-down Mixture of local government’s top- Local government’s bottom-up
innovation policies down policies for regional objectives innovation policies for a national agenda
and bottom-up policies for national
goals by regional context
System More than the aggregation of local Different definition of the scale, Just the sum of local innovative actors
Definition innovative actors range, and roles of a RIS by regional
context
Problem Regional innovation Different definition of the influencing Sub-problems of regions affecting
Definition problems/challenges as a whole range of problems and required national innovation problems/challenges
system solutions by regional context
Goal Definition Regional development as an ideal Different goal definition by regional Sub-objectives of regions to achieve an
goal of a local unit context ideal whole development of a nation
Context and Variant innovation contexts and Flexible variability by contexts around Fixed innovation contexts and localised
Observer localised innovation views of a a region and subjectivity of innovation views of a region; innovation
Variability region; self-regulating innovation observers; flexible construction and mechanisms tied within given national
mechanisms in a big picture of operation of innovation mechanisms innovation policies
national innovation policies by regional context
Sensitivity to Sensitive to the changes of local Flexible sensitivity level to the Not sensitive to the changes of local
Changes innovation properties dynamics of regional innovation innovation properties
properties by regional context
Interpretation Context-based flexible political Variant flexibility of response to Non-context-based static political
Flexibility response to variable regional regional context response to given national innovation
situations policies

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6. CONCLUSIONS

1) Philosophical thinking for system dynamicists to implement a more
thoughtful problem-solving process, and for outside experts to
acknowledge SD as a paradigm in the management sciences
2) ‘Constructivism, interpretivism, holism, and expressivism’ versus
‘reductionism and positivism’, and ‘synthetic dualism’
3) A region-oriented view, a nation-oriented view, and a region-nation
synthetic view
4) Philosophical views of a system remain highly influential in defining
and observing systemic problems in the innovation system and in
developing and implementing managerial regional innovation policies.

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THANK YOU FOR YOUR TIME.
IDEAS AND SUPPORT!

For more information, please contact UngKyu Han
at ungkyuhan@gmail.com

(22/22) UKHan

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