This research presents a system dynamics (SD) model for managing technological innovation, aiming to enhance competitiveness through strategic development of human and technical capabilities. The model is based on a systematic review of existing literature and includes key variables such as capital available for innovation investment, capital invested in high-level human resource training, high-level trained human resources, capital invested in innovation projects, innovation service contracts, profits from innovation service contracts, and initial capital for innovation investment. The methodology involves defining the problem, creating causal loop diagrams, flow diagrams, summarizing main equations, and validating the model. The SD approach allows for the analysis of complex interactions among variables influencing the innovation process. The model focuses on internal innovation within the organization, considering the role of human resources, investment in projects, and revenue generation through innovation services. While the model does not account for external innovation sources, it provides a comprehensive framework for understanding and managing technological innovation in a business context. The study highlights the importance of strategic planning, resource allocation, and continuous improvement in innovation management. The model's flexibility allows for future extensions to incorporate external innovation factors, enhancing the understanding of innovation processes in the business environment.This research presents a system dynamics (SD) model for managing technological innovation, aiming to enhance competitiveness through strategic development of human and technical capabilities. The model is based on a systematic review of existing literature and includes key variables such as capital available for innovation investment, capital invested in high-level human resource training, high-level trained human resources, capital invested in innovation projects, innovation service contracts, profits from innovation service contracts, and initial capital for innovation investment. The methodology involves defining the problem, creating causal loop diagrams, flow diagrams, summarizing main equations, and validating the model. The SD approach allows for the analysis of complex interactions among variables influencing the innovation process. The model focuses on internal innovation within the organization, considering the role of human resources, investment in projects, and revenue generation through innovation services. While the model does not account for external innovation sources, it provides a comprehensive framework for understanding and managing technological innovation in a business context. The study highlights the importance of strategic planning, resource allocation, and continuous improvement in innovation management. The model's flexibility allows for future extensions to incorporate external innovation factors, enhancing the understanding of innovation processes in the business environment.