Networks and innovation in European construction: benefits from inter-organisational cooperation in a fragmented industry

This paper explores the relationship between inter-organisational networks and innovation in the construction industry. This is analysed through detailed interviews with the largest contractors, and a number of professional institutions, representatives of government, quasi-government bodies, research institutes, architects and clients in five European countries. The performance of the construction industry differs widely across different countries. Our research findings suggest that the strength of inter-organisational cooperation may be responsible for enhanced performance of the construction industry in some of the countries. This includes, in particular, the relationship of contractors with subcontractors or suppliers of materials, the government, universities, architects or engineers, clients and international collaborations with other contractors.