Challenges and Opportunities for Innovation in the Public Works ...

After addressing these initial matters, the group continued its discussions of innovation in the
public works infrastructure. These discussions were diverse and searching, but can be roughly grouped
under the following issues:
How to achieve acceptance and implementation of innovation
The need for help with documenting the current status was recognized (i.e., how providers of
PWIS can improve the accuracy of the documentation of current cost, performance, etc.). Further help
is needed to evaluate and estimate the benefits and performance of innovation. Even if help can be
provided, the question still remains: "By whom will the risk be taken?"
Assumption of the risk of innovation
Risk is inherent in the implementation of innovation. Current legal and professional liability
provides strong disincentives to designers to try innovation, and most political decisionmakers, it was felt,
would rather avoid PWIS investments that have a high potential benefit, but could be unsuccessful. The
solution was seen as an assumption of the risk of innovation at Federal, State, and local government levels,
and the following proposals were made:
1. Research. Some group members suggested that a central research institution - similar
to a Rand Institute - is needed to conduct high-potential research considered too risky,
expensive, or broad to be performed through the existing research channels. It was pointed
out that most other developed countries have such central institutions (at least for
construction in general). Many of the most developed countries are developing programs
to actively market and commercialize the research products from such laboratories,
thereby recovering some of the government funding risked on innovative research.
2. PWIS Bank. This bank would fund PWIS projects considered too risky to attract
funding through normal channels. The funding would be derived from an initial Federal
grant, and supported by contributions by State and local governments. Simultaneously,
a program should be created to provide incentives for the implementation of innovation
in a fraction of PWIS projects.
3. Risk Assumption. In small or unsophisticated communities with limited resources,
risk-taking can be promoted through the availability of funding, as the World Bank is
enforcing international standards in Third World countries.
Lessons from the transportation industry
The group considered transportation, among the PWIS industries, as the best model of innovation
implementation. It was stated that transportation is unique in the funding it derives from the taxation of
gasoline and other fuel products, and that other PWIS components do not have such lucrative sources of
funding.
The Intelligent Vehicle Project was cited as an example of a successful innovation project, but it
was emphasized that this project was not "sold" on the basis of transportation, but rather exciting
technology. While this is an example of risk assumption at various levels of government, it clearly
demonstrates the importance of careful planning of the presentation and approach of innovation. The
lesson is that a clear constituency should be identified and carefully nurtured. The message of innovation
should be communicated in "an exciting, grand way," and the process of partnership building should be
emphasized throughout.
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