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Innovation in construction in developing countries: importance of government policy

George Ofori

Chapter 9 in Research Companion to the Construction Industry in Developing Countries, 2026, pp 227-247 from Edward Elgar Publishing

Abstract: Innovation is key to economic growth and development. However, the construction industry has a reputation for being slow to innovate. This chapter addresses several questions. First, what is the best way to define innovation from the perspective of construction and developing countries? Second, what factors influence innovation, and how can these be strengthened in these countries? Third, what role should government play, and how can the government–industry relationship be shaped to enhance innovation in construction? Finally, what is the way forward, and what role can research play? The chapter is based on a review of the literature. On innovation, the focus is put on the broad frontier technologies and on Industry 4.0 and Construction 4.0, towards Industry 5.0 and Construction 5.0; and on policy, focusing on the National Innovation System. It is found that innovation is multilayered and complex. Governments should develop policies to stimulate and promote innovation and collaborate with stakeholders.

Keywords: Innovation; Construction industry; Developing countries; Frontier technologies; Policies; Government–Industry collaboration (search for similar items in EconPapers)
Date: 2026
ISBN: 9781035336302
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