Formation of Technological Capabilities for Catch-up in Complex Product Systems (The case of directional drilling equipments for oil & gas wells)

The majority of Drilling equipment in oil gas industry is considered as Complex Products and System. Specific capabilitiesIn the oil industry, most downhole drilling pieces of equipment are considered complex product systems. During the last decades, the National Iranian Drilling Company has made considerable efforts to acquire knowledge and technology of manufacturing related to directional drilling and reserves evaluation equipment. In this regard, this study uses the qualitative case study research strategy to examine the stages of technological capability formation for the production and development of diversion drilling equipment in this company during 27 years (1992 to 2019). According to the research findings, the company has achieved the necessary technological capabilities to manufacture equipment, despite the limitations in international cooperation. Also, these capabilities have been formed in three stages: 1) cooperation with foreign firms; 2) purchasing, installation, and exploitation of the imported equipment; and 3) independently manufacturing by developing an innovation network.