There is an increasing emphasis on the importance of innovation for the longterm economic success of businesses. At the same time the construction industry is characterized as being a poor innovator in comparison to other industries. If the university sector is to play a role in increasing innovation within construction companies it is necessary to for it to understand what the benefits and risks of innovation might be and what the motivation is for a business to adopt innovation. This paper attempts to develop answers to these questions through the analysis of a case study involving a small heating and plumbing company that embarked upon a performance improvement initiative and as a result implemented a number of innovative practices in its operations. Building upon on the results of this case study, suggestions for more effective collaboration between the university sector and industry are made.
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