Policy Brief 153, 3 February 2026
Unlocking Innovation Traps: A Systems Thinking Approach to University–SME Collaboration
By Dr. Ufuk Türen and Syed Ibrahim Bilal Majid
Despite growing institutional interest, university–small and medium-sized enterprise (SME) collaborations often underperform, stalling before generating sustainable innovation. This study adopts a systems thinking perspective to diagnose such persistent failures as structural—rather than individual—challenges. Using OSTİM Technical University (OSTİMTECH) as a case study, the research employs participatory causal loop diagrams (CLDs) to visualize key feedback dynamics affecting trust, incentives, and knowledge flows. Central to the analysis is the “Success to the Successful” archetype, which explains how dominant academic incentives reinforce publication-oriented behaviors while marginalizing collaboration and applied innovation. The resulting model reveals why certain loops—like academic reputation—gain momentum while others—such as ecosystem learning—remain underdeveloped without intentional redesign. By identifying leverage points for institutional reform, including incentive recalibration and long-term partnership support, the paper offers actionable insights for third-generation universities. Ultimately, reframing collaboration through a systemic lens enhances understanding of complex innovation ecosystems and guides more credible, sustainable approaches to university–industry engagement.