The goal of this paper is to identify the main factors driving or hindering construction innovation. An analysis of the relevant literature indicates there are six primary influences: (1) clients and manufacturers; (2) the structure of production; (3) relationships between individuals and firms within the industry and between the industry and external parties; (4) procurement systems; (5) regulations/standards; and (6) the nature and quality of organizational resources. Attention to these factors by businesses and public policy makers would be a key component of effective innovation strategy and policy. Further research is needed, however, to explore the relationships between innovation influences, and between innovation influences and other aspects of business strategy and environment, in the context of broader societal considerations. Further research should also identify quantitative estimates of the impact of innovation on the construction industry.
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