Background

The post-industrial economies have entered a stage where the production, distribution and use of knowledge and innovation are the main determinants of corporate competitiveness and national growth. These economies are characterised by accelerating technological advances (especially in information and communications, biotechnology and materials); rapid movement of investment; global competition; and realisation of the effect of productive activities on the environment.

This “knowledge-based global economy” has implications for all business activities. It offers opportunities and the means to improved performance but also creates rapid change, uncertainty, and adjustment problems. Firms in such an economy will have flexible organisations based on multi-task responsibilities and teamwork. They can achieve high product quality and customisation together with speed and low costs.

What challenges does the knowledge-based economy pose to the construction industry in countries at various stages of development? How can industries, firms and practitioners meet these demands? What corporate strategies would be most appropriate? What will be the most appropriate relationship between government and industry?

For developing countries, fundamental problems and constraints in the construction industries must be addressed. The possible adverse effects of failure to prepare for the new imperatives are more serious; and the resources and expertise for addressing them are also scarce. Thus, the need for action is more pressing.