The construction industry is labeled as an industry that highly sticks to established practice without sufficient innovation. Nowadays, construction organizations strive for survival by adopting cutthroat pricing to the detriment of product quality. This approach stifles long-term competitiveness. Innovation can be defined as “successful exploitation of new ideas, where the ideas are new to unit of adoption”. Providing an accurate definition is considered to be one of the most crucial means to enhance competitiveness. In spite of enormous literature on the definitions of innovation, there are limited studies exploring barriers and drivers of innovation in the Hong Kong construction industry. This study aims to fill those research gaps. Barriers to developing innovations have been identified, as well as the nature of the construction industry, conventional methods of procuring projects, and risks and cost of innovations. Discovering ways to identify opportunities and drivers of innovations have been explored through a case study. It is found that an innovative procurement system, sufficient information exchange, and a progressive employer drive innovations.