System Dynamics was first developed in the 1950s by Jay W. Forrester at MIT. Initially, it was used to study industrial processes. Forrester's big idea was to use feedback loops and time delays to understand how different parts of a system interact with one another. He published the groundbreaking book Industrial Dynamics in 1961, which laid the foundation for this field.
In the 1970s, System Dynamics gained wider attention with the release of the famous book The Limits to Growth, created by the Club of Rome. This work modeled the interaction between population growth, resource depletion, and environmental constraints, highlighting the limits of exponential growth.