This is an ongoing research project combines System Dynamics (SD) and participatory modelling to identify variables forming the Russian Federation construction innovation system and to create an initial comprehensive conceptual model supported by stakeholder-based techniques. Quantification of this complex and dynamic construction innovation system is complicated as it includes a range of components such as information, resources, strategies, time and uncertainty. To map and conceptualize the system, system thinking and participatory techniques have been used. Methods employed academic and industry consultation and stakeholder engagement through participatory interviews. In this current paper we present the development of a conceptual model as a causal loop diagram to understand the causes, impacts and pathways leading to greater innovation performance in the Russian Federation construction industry. Moreover, the created model underpins the future development of an operationalized system dynamic model.