Abstract Based on the method of system dynamics, this study constructs the system dynamics model of knowledge accumulation and dual innovation, which is based on analyzing the causal relationship among different variables in the system of “knowledge-innovation”, and the model is simulated by simulation software VENSIM PLE. Results show that: knowledge accumulation and incremental innovation ability perform a growth trend whose rate declines; breakthrough innovation ability is opposite to that trend, i.e., initial stage is high, but maturity is low; fluctuation environment negatively conditions the relationship between knowledge accumulation and incremental innovation; compared to incremental innovation ability, external knowledge sources have a more obvious positive moderating effect on the relationship between knowledge accumulation and breakthrough innovation.
