Should governments fund construction research?

This paper considers the role played by government in stimulating innovation to improve quality, profitability and competitiveness in construction activities. It questions whether governments should fund research and development in construction, and if so, what level and types of support might be appropriate to meet emerging needs. It addresses this with reference to the current debate on the public funding of science, citing Kealey and Pavitt. The author considers specific construction-related issues and changing conditions, indicating the need for more, rather than less funding by both private and public sectors. In conclusion, the author develops a third way, different from Kealey's and Pavitt's approaches. Construction requires a strong and vibrant research base, partly funded by government. Simultaneously, the state requires a research and knowledge base in order to fulfil its roles such as for governance of technologies in the built environment. A complementarity effect arises from both public and private funding - which is therefore greater than the sum of the parts.