The Effect of the Dynamics of Knowledge Base Complexity on Schumpeterian Patterns of Innovation: The Upstream Petroleum Industry

15 Pages Posted: 20 Sep 2018

See all articles by Ali Maleki

Ali Maleki

Sharif University of Technology

Alessandro Rosiello

University of Edinburgh

David Wield

Open University

Date Written: September 2018

Abstract

This article analyzes important changes in technological innovation in the upstream petroleum industry. It provides evidence that shifts in sectoral patterns of innovation over the petroleum industry's lifecycle from the 1970s up to 2005 were dependent on the dynamics of knowledge base complexity (KBC), a key dimension of an industry's technological regime. Accordingly, observed shifts in innovation patterns are understood to be the aggregated strategic response of industry innovators to changes in the technological regime. The article proposes a quantitative method for exploring KBC and Schumpeterian patterns of innovation, and interactions between the two at the industry level. As the industry evolved, its knowledge base moved to higher orders of complexity creating a shift in the Schumpeterian pattern of innovation. Increased KBC was found to alter Schumpeterian patterns from Mark I toward a ‘modified’ Mark II. Instead of coming predominantly from ‘traditional’ established oil operators, technological innovation was increasingly triggered by a new class of emergent integrated service companies – ‘second tier’ systems integrators of the upstream sector able to cope with increased KBC.

Suggested Citation

Maleki, Ali and Rosiello, Alessandro and Wield, David, The Effect of the Dynamics of Knowledge Base Complexity on Schumpeterian Patterns of Innovation: The Upstream Petroleum Industry (September 2018). R&D Management, Vol. 48, Issue 4, pp. 379-393, 2018, Available at SSRN: https://ssrn.com/abstract=3252093 or http://dx.doi.org/10.1111/radm.12251

Ali Maleki (Contact Author)

Sharif University of Technology ( email )

Tehran
Iran

Alessandro Rosiello

University of Edinburgh ( email )

Old College
South Bridge
Edinburgh, Scotland EH8 9JY
United Kingdom

David Wield

Open University ( email )

Walton Hall
Milton Keynes, Buckinghamshire MK7 6AA
United Kingdom

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