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The role of client leadership in improving construction industry performance by increasing the rate and quality of innovation activity has been receiving increasing attention globally over the past decade. There has however been less attention given to the capability of clients to effectively perform this role. The literature suggests that the internal innovation competency of clients impacts on their potential to encourage innovation throughout the industry. Based on data collected via a large‐scale survey of the Australian construction industry, the innovation competence of repeat public sector clients is examined using descriptive statistics. The results show that the clients have a relatively high level of innovation competence, compared to contractors, consultants and suppliers. The role of innovation competence is important. If public sector client agencies wish to protect and promote the role they play in encouraging industry innovation, they need to nurture their internal innovation competence.
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