To read this content please select one of the options below:

Innovation in Infrastructure Project Finance: A Typology for Conceptualization

1 OHL School of Construction, College of Engineering and Computing, Florida International University, 105555 W Flagler St., Miami, FL, 33174, USA
2 School of Civil Engineering, Purdue University, 550 Stadium Mall Dr., West Lafayette, IN 47907-2051, USA

International Journal of Innovation Science

ISSN: 1757-2223

Article publication date: 30 September 2014

259

Abstract

Due to the growing demand for civil infrastructure, financial innovations are required to close the financing gap. However, a lack of theories has inhibited a complete understanding and, thus, creation and diffusion of financial innovation. A lack of theory about financial innovations in infrastructure is mainly due to the absence of a framework to conceptualize these innovations. A typology that enables comparison of financial systems and, hence, provide a framework to conceptualize financial innovations is missing in the existing literature. This paper defines innovation in the context of financing, funding and delivery of infrastructure projects and proposes a new typology for conceptualization of the loci and types of financial innovations in infrastructure. The loci of innovations are in risk mitigation, regulation, cash flow, contract, organizational, and capital sub-systems. Types of innovations are classified as either integrated or modular and either sustaining or disruptive. The typology was tested by mapping seven innovations created by the U. S. Federal Highway Administration and diffused into 232 transportation projects between 1994 and 2002. Qualitative comparative analysis was then used to evaluate the diffusion trends of financial innovations in the case studies and to demonstrate the capability of the proposed typology for facilitating theory building in the area of infrastructure financial innovations.

Citation

Mostafavi, A., Abraham, D. and Sinfield, J. (2014), "Innovation in Infrastructure Project Finance: A Typology for Conceptualization", International Journal of Innovation Science, Vol. 6 No. 3, pp. 127-144. https://doi.org/10.1260/1757-2223.6.3.127

Publisher

:

Emerald Group Publishing Limited

Related articles