Stimulating Construction Innovation in Singapore through the National System of Innovation

Abstract

This paper examines the national approach to the stimulation of innovation in construction. Based on a qualitative systems thinking approach, a model of the National System of Innovation (NSI) is structured with five main NSI actors: local contractors; suppliers; national research institutions; government; and foreign contractors. This model, established by the assumption that local contractors’ key motivation for innovation is based on profit maximization, highlights two main driving forces of construction innovation within the NSI: profit incentives and the social desirability of higher construction productivity and quality. The research findings indicate that high profit levels provide a higher number of growth momentums compared to the social desirability of innovation. Additionally, although social desirability of construction innovation is associated with a number of obstacles, high profit levels do not impose any significant hindrances. Based on the research findings, it is concluded that innovation policies should be focused on sustaining higher profit levels of contractors. The social desirability of innovation can be more efficiently utilized by regular reviews of national policies as the industry develops.