ABSTRACT
This chapter presents an empirical analysis of the characteristics of the innovation model in upstream petroleum and outlines the role of the supply industry in innovation in this sector. The chapter discusses these issues in the light of the theoretical and methodological problem of measuring innovation in resource-based sectors and economies more generally. The analysis shows that for a country like Norway, a large part of the innovation capacity resides in the petroleum sector and among the suppliers. We then address the issue of how the sector innovates and emphasise the collaborative model of innovation and in particular the close relationships between the oil and gas companies and their suppliers.
