Energy innovations in construction: network effects and energy policy in Dutch construction

Interplay between projects and firms is intrinsic to the innovation system of the construction industry. Differences between these organisation forms may influence the development and diffusion of innovations in this sector. In this paper we investigate the network effects of the construction sector as a typical project-organised industry in its cooperation with the supply industry of heating systems, known as a typical functionally organised sector. The supply industry is expected to innovate in order to encourage CO2 reductions while the construction industry is urged to purchase the new technology by means of energy policy that is imposed to new construction. Whereas construction organizations are the recipients of innovations coming from the supplying industry, energy policy is addressed at the contractors, not the suppliers. This article concentrates on the network effects between project based construction firms and functionally organized suppliers in the Netherlands, in relation to policies addressed at energy conservation and aiming for innovation in energy techniques applied. By means of interviews with several actors in the field, this complex innovation system and its effect for the development and diffusion of energy innovations is explored. This research demonstrated that communication between decision makers in the design process and suppliers of heating technology is rare and that multiple layers of communication exist in the building process. Notwithstanding the effect that energy performance policy has in reducing energy consumption for heating, cooling and ventilation in building, it can neither be attributed an effect in encouraging communication between contractors and heating technology suppliers, nor affecting innovative behaviour of these two parties.