Innovation, market failures and policy implications of KIBS firms: The case of Trinidad and Tobago's oil and gas sector

Preeya Mohan, Eric Strobl () and Patrick Watson

Energy Policy, 2021, vol. 153, issue C

Abstract: Trinidad and Tobago's oil and gas industry is well established and is one of the oldest in the world, which has led to a large and growing number of oil and gas Knowledge Intensive Business Services (KIBS) firms. These firms provide advanced technological or professional knowledge as intensive inputs into the business processes of other organizations. This paper aims to investigate innovation in KIBS firms in the oil and gas sector in Trinidad and Tobago, and to identify market and government failures that hinder their development to inform policy making. The factors that increase KIBS firm's likelihood of introducing an innovation are firm size, age, number of customers, internal research and development, and the use of external information. Moreover, several market failures hinder their potential for innovation and technology diffusion, including information asymmetries, difficulty in obtaining finance, lack of appropriate skills, and limited partnerships/collaboration with research institutions. This study recommends the development of a national innovation policy and program, greater dialogue, and clear communication channels among all industry stakeholders, and the expansion of several existing local policy initiatives, including trade missions and corporate governance programs and training and skills through tertiary educational institutes.

Keywords: Knowledge intensive business services; Oil and gas; Developing country (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:153:y:2021:i:c:s0301421521001191

DOI: 10.1016/j.enpol.2021.112250

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