Transcript Document 186203

Extractive Industries as a Platform for
the Creation of Knowledge Intensive
Industries:
Trinidad and Tobago’s Oil and Gas
Service Providers
Preeya Mohan
([email protected])
Eric Strobl
Patrick Watson
The Sir Arthur Lewis Institute of Social and Economic Studies, University of the West Indies, St.
Augustine
The Future of Extractive Industries in Latin America and the Caribbean
September 21st-22nd 2016
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Introduction
• Latin America and the Caribbean are among the most natural
resource
abundant
regions
internationally,
but
remain
underdeveloped.
• Knowledge Intensive Business Services (KIBS) firms:
– Vertically integrated value chains have been redesigned and new
production paths created through the use of Information and
Communications Technology (ICT) and outsourcing and subcontracting.
• Developed natural resource rich countries (Finland, Norway Canada
and Australia) show that natural resources can lead to sustainable
growth and development and KIBS firms play an important role
(Aslesen and Isaksen 2010, Engen 2009 and Noreng 2005).
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KIBS Firms
• Serve the demands of other firms (provide scientific and
technological knowledge and professional services).
• Most innovative within the services sector and comparable to
high-tech manufacturing (Nählinder 2002).
• Knowledge creating entities help with knowledge transfer,
innovation, productivity and diversification (Castellacci 2008,
Castaldi 2009 and Hertog and Bilderbeek 1998).
• Globally the share of knowledge intensive services to total output
increasing (Stehrer et al. 2012) and KIBS firms are a main engine
for future growth (Gotsch et al. 2011).
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Objective
• To empirically examine the role of T&T oil and gas KIBS
firms in diversifying the economy away from an
extractive to a knowledge intensive economy:
– Knowledge transfer, Innovation, Productivity & Diversification
– Employment Capabilities & Human Resource Development
– Environment & Sustainability
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Data and Methodology
• Primary data:
– Questionnaire with key industry stakeholders.
• Secondary data:
– Energy Chamber of T&T, firm website, Ministry of Energy
and Energy Affairs, Central Bank of T&T, government
reports and policy documents.
• Firm case studies.
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T&T Overview
• First-class oil and gas and petrochemical industry over 100 years
old.
• Growth led by oil and gas:
– 45% of GDP, 48% of government revenue and 80% of exports, but
only 3% of employment (CBTT 2015).
• Not been able to develop viable clusters outside of oil and gas.
• Fall in international oil and gas prices and local production.
• GDP growth averaged -0.53% in the past 5 years (WDI 2015).
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T&T KIBS Firms
• T&T’s oil and gas services sector growing:
– Contribution to GDP increased from 4% to 5% from 2001 to 2012
(CBTT 2013).
– Employs 33.33% of oil and gas workers (Energy Chamber of T&T
2009).
• Approximately 300-400 KIBS firms.
• 20-30 local KIBS firms that operate and export services regionally
(Barbados, Jamaica, Suriname, Guyana, Cuba, Aruba, Venezuela,
Columbia, Belize and Brazil) and internationally (Canada, US,
Ghana, Indonesia, Bahrain, Dubai, Vietnam and Uganda).
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T&T KIBS Firms Cont’d
• Tucker Energy Services
• Sadhna Petroleum Services Company
• Trinidad Offshore Fabricators (TOFCO)
• Kenson School of Production Technology
• Oil Mop Environmental Services
• Kaizen Environmental Services
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Other external
Market
40
20
0
30
34
Government
48
University
66
Within firm/enterprise
group
60
61
Other market
68
Competitors
64
Consultants/private
R&D institutes
77
Suppliers
79
Clients
82
Industry associations
100
Conferences
80
Journals
Knowledge Transfer
%
57
Internal Public sector
9
Other external
Product
32 32
Market
Process
Government
40
University
62 61
72 76
Within
firm/enterprise group
79
Other market
60
49 53
Competitors
64 66
72
Consultants/private
R&D institutes
83 82
Suppliers
81 87
Clients
87 89
Industry associations
100
Conferences
80
Journals
Knowledge Transfer Cont’d
%
60 63
34 37
20
0
Internal Public sector
10
Knowledge Transfer Cont’d
Patents/trademark/industrial
design/copyright
Innovation budget
Innovation leader
Innoation department
Structure for making innovation
happen
Innovation strategy
%
Other External
0
20
Public
40
Market
60
80
100
Internal
11
Innovation Co-operation
24
23
20
16
15
13
University
Competitors
Enterprise group
21
Consultants/private R&D institutes
29
26
27
32
37
Suppliers
43
29
30
Government
Process
58
48
Clients
%
51
55
0
Product
20
40
60
66
74
80
100
All respondents
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Innovation
3. Innovative Activity
%
60
40
20
0
New/improved New/improved
product
process
New/improved
supporting activities
57
New/improved logistics,
marketing, delivery or…
46
New/improved method
of manufacturing
%
38
0
20
40
60
80 100
36
36
32
13
Innovation strategy
2. Process
38
11
Patents/trademark/indu
strial design/copyright
40
35
30
25
20
15
10
5
0
68
Innovation budget
80
Innovation leader
84
Inovation department
100
1. Product and Process
Structure for innovation
%
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Employment Capabilities
• Majority of oil and gas workers are highly skilled nationals working in
local and foreign companies with internationally recognized
qualifications.
• National structure for training at all levels (craft, technical qualifications
and university).
• Government initiatives- created universities and specialized learning
centers and relevant academic curricula.
• Oil and gas revenue funds tertiary level education and Technical
Vocational Education and Training.
• KIBS firms which are specialized research institutions- Kenson School of
Production Technology.
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Lessons Learnt
• T&T diversified away from oil to natural gas and
petrochemicals.
• Local content strategy:
–
–
–
–
Local capability development, education and training
Diversification
Entrepreneurship
Foreign content
• T&T steadily built its institutional capacity for the supply of
knowledge:
– Government established and supported STI institutions.
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Going Forward
1.
Information dissemination and data collection
2.
Increasing the supply of knowledge and technology development
3.
Financial support for R&D and innovation
4.
Technology transfer and adaptation
5.
Coordination of actors and information sharing
6.
Human capital development
7.
Enhancing export capabilities
8.
Environmental Protection
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Thank you
[email protected]
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