innovation cycle

Introduction. The authors analyzed the existing approaches to the study of innovative systems. It was shown that a deep and comprehensive study of their formation and functioning mechanisms can be performed by using simulation technologies. In the process of model development, the existing links between the participants of the innovation system must be systematized, and then quantitatively and qualitatively evaluated and verified. Theoretical analysis. Building pure mathematical models of innovation processes is quite difficult, so in world research practice much attention is paid to the development of simulation models, which allow to describe different scenarios of innovative technologies promotion. The authors compared these scenarios and chose the best option, then they systematized the basic approaches to innovative systems modeling. Empirical analysis. In practice, the development of the systemdynamic model is carried out sequentially. In the first step, the system or process under study is precisely identified to determine the potential boundaries of the modelled process. The model is presented as objects connected to each other within the established boundaries and existing behavior of the system. The final step is to build an influence graph, which allows to show the connections between all elements and determine the degree of their influence on each other. Results. The concept of the system-dynamic model developed by the authors is focused on the study of the innovation transfer process in the transport sector. The model considers the state influence, the size and nature of investments from various sources and mechanisms of information links formation between the participants of the transport process. Practical realization of the model will improve the investment mechanisms and study the involvement of universities into the innovational transport system.