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

through the formulation of visions utilizing those technologies, and the implementation of
a series of administrative measures that stimulate R&D activities in the directions indicated
by those visions. The administrative measures include governmental guidance in the form
of laws, regulations, tax incentives, etc.; coordination among the different planning divisions
of the Ministry of the activities associated with that vision; and the development of specific
programs to stimulate the diffusion of knowledge to all working on the vision. Success of
the policy measures requires close cooperation with, and consistency with other government
agency industry related policies; a flexible approach to organizing R&D activities; catalytic
use of governmental, including academic, research laboratories; and the establishment of
partnership activities between industry, academia, and government.
For the model of Fig. 3 there are two elements that have little significance for the
current Japanese economic environment but strong influences in the current U.S. economic
environment. Those elements are shown in boxes in the economic environment box of Fig.
3 and are liability costs, and capital investment incentives expressed as the cost of capital
and the probability of return.
In Japan, the Ministry of Construction u.;es the model of Fig. 3 to provide leadership
for technology innovation in construction by coupling innovation and regulatory policy, thus
reducing the liability of the contractor authorized to use an innovative technology. By
contrast, the current U.S. situation discourages innovation. Liability is a major consideration
and the regulatory requirement common in public works of mandatory acceptance of the
lowest responsible bid has lead to increasing separation of the design and construction
processes on both public and private works, and, often, the preordaining for public works
of a confrontational relationship betweei, contractor and owner.
THE IMPORTANCE OF INVOLVING THE CONTRACTOR
The organization of a society, and particularly the role of the major contractors in
that society, affects strongly the transfer of research into practice for constructed facilities.
The major current concerns of the construction industry, in the U.S., Japan, and Europe are
the same: the increasing age of skilled workers in construction, compared to workers in
others industries; and a stagnant or decreasing productivity per worker. Construction is
dirty, difficult and dangerous. The construction industry could benefit markedly from
advances in robotics; in aesthetically acceptable automation-oriented structural and cladding
systems; and in computer integrated procedures.
The profiles of the construction industry in Japan and the U.S. are very similar with
the six largest firms in both countries handling about 10 percent of the total market, and the
top 0.3 percent of the total number of contractors holding about 35 percent of the total
market. Yet in Japan the six largest contractors spend an average of 1 percent of sales,
about 60 percent of their net profits, on R&D. The six largest U.S. contractors spend only
about 0.04 percent of sales on R&D. The amount spent on construction R&D in Japan by
contractors is more thar double that spent by their government. The amount spent on
construction R&D in the U.S.A. by contractors is about one seventh of that spent by the
government. Lack of capital and appropriate human resources, competing business
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