Demonstrating the benefits of construction innovation

The construction industry needs to achieve greater efficiency and effectiveness. However, change is not readily embraced by the industry. This resistance to change compromises innovation performance, and negatively impacts client and industry goals. One of the key reasons for relatively poor construction industry performance is scepticism about the potential benefits of innovation, particularly among small and medium-sized businesses. This paper investigates the links between innovation and project performance, with a view to demonstrating the benefits that can be achieved. It offers case study evidence of the tangible, monetary benefits of innovation to businesses. The paper is based on innovation case studies in the Australian construction industry undertaken in 2003. It concludes with a discussion of the distribution of innovation benefits and the impact on incentive structures. In future research the results will be interpreted more widely, by undertaking a comprehensive integrative analysis of existing academic literature on construction innovation benefits.