To enhance competition in the construction industry, EU policies have created and harmonised functional building codes. Moreover, many actors advocate the construction industry moves towards a lean production, process-based way of working for quality and cost reasons. Here, TimberFramed Engineering approaches are considered to have a competitive and environmental advantage. There is however underlying concerns that conservatism in the construction industry, and lack of timber engineering skills, may be obstacles to change. This paper therefore assesses whether EU construction policy innovation contributed to innovation at the firm level.Timber framed innovators in six European countries were identified, and their sources of innovation assessed.

The market share of timber-frame construction has increased in many European countries after the revision of national building regulations and implementation of national development programmes as well as marketing efforts of the forest industry. Our research within COST E51 has looked at the timber construction industry and assessed the innovation process in eight European countries, the role and position of this industry in the construction process and the influence of policies as drivers of knowledge creation. Results indicate that innovative timber construction firms have acted on the changed regulations overcoming the lock-in effects of construction industry standards and culture, and have in some countries been at the forefront to adjust the traditional construction process. These firms have in most cases come from the forest industry sector, as they have had the most to gain. The innovation type and progress differ, indicating that construction is a local activity influenced by national traditions, in both industry behaviour and policy aim. It is recommended that policy makers support the establishment of local and regional timber-based competence centres. Also, public construction clients ought to have bigger leeway to support innovative construction products and processes, as a means to generating the new innovations and knowledge creation and transfer necessary to create a sustainable future society.