Contracts and Incentives Innovation in Norway’s Offshore Sector

Contracts and Incentives Innovation in Norway’s Offshore Sector The paper analyses whether added value can be obtained from better collaboration between oil companies and contractors. The topic is addressed by analysing organisational patterns, contracts and compensation formats. Specific issues raised in this paper include the following questions. Are innovations needed to contractual terms and tendering processes? Do contractors have sufficiently strong incentives to exploit the opportunities for service provision offered by existing technology? Do they have sufficient incentives within the framework of existing and future contracts to develop new technological solutions? Do the tender criteria pick up technological and organisational improvements? Do requirements for transparency and auditability prompt decision-takers to hesitate to select contractors with superior technology because that can be difficult to verify in a tendering process? International Journal of Economics and Management Engineering World Academic Publishing Co.

Contracts and Incentives Innovation in Norway’s Offshore Sector

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