Construction Innovation: Fifth Generation Perspective

Abstract

Despite what many researchers, governments, and commentators say, there is a considerable amount of innovation that occurs in the construction industry. Negative opinions of construction innovation are often misinformed by data and methodologies designed to measure innovation in other sectors and by a misunderstanding of the realities of innovation in the construction industry. A theoretical model of innovation in construction is developed on the basis of fifth-generation innovation research. Through interviews with 58 thought leaders from across the Australian and United Kingdom construction industries, this model is contrasted with what happens in practice to refine a model of innovation that can form the conceptual basis for future research. The findings support but also contrast many aspects of the mainstream innovation literature around fifth-generation innovation. In particular, ideas around systemizing innovation do not sit comfortably with the way that innovation happens in practice in the construction industry. The organization of innovation in construction is a dynamic process that needs to move in response to the different stages of the construction process, starting with an organic approach in early design and tender stages and moving to a more systematic approach during the delivery phase, in which tight budgets and programs demand great discipline. Innovation late on occurs in response to problems rather than in anticipation of opportunities early on and demands a different management approach. Findings also support the crucial role of clients in construction innovation but suggest that most clients care little about this and do not have the tools to assess innovation in bids. There is a fundamental contradiction here that undermines respondents’ preferences for market-led rather than regulation-led innovation, which needs further exploration.