ABSTRACT
This chapter presents different approaches to the measurement of innovation in construction and examples of findings that use these different approaches. It discusses the issue of how to define construction activities, and will be followed by sections describing two different measurement approaches to innovation: the 'firm as actor approach'; and the systems approach. Prime Contracting includes those firms engaged in constructing complete works, whether buildings or engineering products, such as residential and non-residential building construction and engineering construction which involves construction projects such as highways, bridges, sewers, power and communications transmission lines and similar structures and works. Using business research and development (R&D) as the only measure of innovation, it has been noted by many observers that the construction industry has very low R&D expenditures relative to other industries. The chapter also presents econometric analyses which that deal with the determinants of innovation.
