New research by NZIER throws light on ways to increase innovation in residential building in New Zealand.
The study looks at the impact of bespoke housing on the rate of innovation in residential construction and also consdiers if the size of construction firms has a part to play. It was commissioned by BRANZ and the Productivity Partnership.
NZIER found that new products and building systems drive a lot of the innovation in residential construction. These new products might improve the quality of a house, but are unlikely to improve measured productivity. It also found that the average size of New Zealand construction firms is larger than statistics suggest because they have a high number of contractors who are treated as staff - making their "shadow size" significantly bigger.
The report concludes that improving project management and changing how building regulatory standards are set and implemented may provide the greatest opportunities for improving productivity and innovation in the sector.
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