The study adopts a hybrid study of deconstructing the current situation and simulating the future, exploring and simulating the core literacy path of innovative and entrepreneurial talents in colleges and universities from two levels of static influence and dynamic evolution. The study constructed a structural equation model containing five antecedent variables (individual level and motivation, behavioral-emotional participation, learning environment, learning resources, and teacher competence) and three outcome variables (knowledge, practice, and psychological literacy), and tested the 15 theoretical hypotheses proposed. The system dynamics approach was also used to construct a simulation model of talent development. Three policy scenarios, namely, comprehensive development, high teacher allocation and atmosphere creation, were set to simulate the evolutionary trend of the three dimensions of core literacy over a five-year period by adjusting the time parameters of the corresponding influencing factors. Except for the two paths of “learning environment → knowledge level” and “resource learning → psychological quality” which did not reach significance, the remaining 13 paths were all supported. Among them, the standardized path coefficient of “individual level and motivation → knowledge level” was the highest, reaching 0.724. The high faculty allocation model is the most efficient in improving knowledge (4.23→4.75) and practical ability (4.46→4.80), while the atmosphere creation model achieves a reversal in psychological literacy cultivation with a score of 4.38 after five years, which is significantly better than the other models.
