The construction industry plays an essential role in the provision of infrastructure and particularly housing. At the same time, because of its size and participation in the national economies, the improvement of the construction industry could generate long-lasting benefits for the society. However, the construction industry has failed to adapt to modern societal and technological challenges. Offsite construction is being proposed as a solution to some of the structural failures that inhibit change and adaptation of the construction industry. Even though offsite construction has been long considered as a solution, its uptake remains low. Public authorities can play a large role in incentivizing offsite construction through public policy and as major clients of built environment products. In this research, we intend to answer the question of: How can public policy instruments at national and local levels help to overcome the barriers for adoption of offsite manufacturing in the construction industry of the Netherlands?”. An exploratory case study of the conditions in the Netherlands was used to determine adoption barriers and possible roles that public authorities could have in incentivizing offsite construction. We found five barriers that affect the prospect of adoption of offsite construction but also affect the general innovativeness of the construction industry, and fifteen barriers that are offsite construction technology-specific. Based on key activities derived from innovations systems and transformational approaches to innovation policy, we proposed different roles that the government could assume in the process of incentivizing the adoption of offsite construction. Six possible roles and instruments were proposed to improve the innovativeness of the construction industry; Five possible roles and instruments to improve the adoption and uptake of offsite construction and; ten roles to improve the uptake of offsite construction and the provision of housing.