The Concept of Innovation in the U.s. Housing Industry the State of Innovation in Housing

Much of the literature on innovation in housing examines the rate at which inventions are developed, how quickly innovations are diffused, and whether industry productivity is increasing.1 Unfortunately, the conclusions of these studies are limited by a lack of data and the difficulty involved in collecting such data. As a result, conclusions are often based on small sample sizes or anecdotal experiences that cannot be extrapolated to industrywide analyses or crosssector comparisons. Although it would be desirable to quantify the state of innovation, it is important to recognize that innovation, no matter its rate, is good, because improvement in products and services is associated with general levels of innovation. For this reason, this report explores how innovation can be increased.