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This article analyses motivations for innovation in construction using the service sector adaptation of the Sectoral System of Innovation (SSI) framework. Interviews and site visits were conducted with four Malaysian firms. Innovation in construction is similar to the service sector. There is evidence of technology-push, capability-push and demand-pull; capability push is the most important. Construction firms innovate to gain commercial opportunities, to solve project-related problems and to improve processes. By simplifying construction work, process innovation saves time and costs, increasing efficiency and productivity, and providing increased competitiveness. Innovation is also motivated by committed and passionate actors within construction firm.