Growing numbers of National Oil Companies (NOCs) have experienced great changes since the beginning of the 21st century which have transformed them into International Energy Companies. The challenges of internationalization have led NOCs of China to pay more attention to building technology innovation systems, which promoted indigenous innovation capacity and technological competitiveness in the global market. This paper is based on the study and analysis of Chinese NOCs' technology innovation systems, and emphasizes the building of these systems in terms of how they have facilitated the companies' transition. A detailed review based on case studies in China indicates that organization, facilities and mechanisms are the key elements and emphasis in the building of Chinese NOCs' technology innovation system. NOCs of China restructured their technology innovation organization structures, optimizing the allocation of innovation resources from R&D to commercialization in both upstream and downstream operations. Facilities are the foundation of technology innovation activity, and in this respect NOCs of China invested in building or upgrading labs/pilots to support their technology innovation activities and promote the development of science and technology in the national petroleum industry. Mechanisms such as stable investment, technical talent and commercial deployment policies incentivized the application of new technology and accelerated open innovation.
This paper describes the practices of three NOCs of China in constructing technology innovation systems and the significant achievements they have made in enhancing their indigenous innovative capacity and strengthening international cooperation, contributing to Chinese NOCs' transition from technology followers to technology leaders.
