Dynamics of innovation can refer to two processes: how innovation proceeds within an organization and how an innovation spreads in the market place. This topic is more about the latter. We introduce ideas like first mover advantage, early adopters, early/late market, crossing the chasm, tipping points, saturation, s-curve, etc.
Note that Schelling's mathematical and graphical analysis is accessible and provides a way to see what interventions might have what effects (e.g., seeding the system with more "automatic adopters" by giving away free samples). Gladwell section on picking network stars might also be useful.
Gladwell, Malcom. selection from The Tipping Point.
Kaplan, Soren. Innovation Lifecycles: Leveraging market, technology, and organizational S-curves to drive breakthrough growth
Rogers, Everett M. (1983). Diffusion of innovations (3rd ed.). New York: Free Press of Glencoe. ISBN 9780029266502.
Schelling, Thomas. selection from Micromotives and Macrobehaviors.