CHANGING PATTERNS OF INNOVATION IN A PROCESS-DOMINATED INDUSTRY

Research on innovation in several industries has indicated that indivi dual radical and incremental innovations have involved contributions f rom communicating networks of scientists and engineers in different or ganizations. This paper analyses the record of innovation within the d ownstream (refining and organic chemical production) and upstream (exp loration and extraction of oil and gas) sectors of the petrochemical i ndustry. It finds that in the downstream industry a varied group of or ganizations have mediated innovation, following the cyclical pattern o f the Abernathy-Utterback model. On the other hand, while evidence abo ut the upstream petroleum industry indicates a diversity of contributo rs similar to those found in other industries, the tempo of innovation does not appear to fit cyclical models derived from a number of manuf acturing industries. A continuous innovation pattern which has emerged since 1980 in the pharmaceutical industry is discussed as offering a possible model for other industries which must innovate continuously.