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Unformatted text preview: “gradual change in workforce composition and strategic positioning within the industry. The three apparent mechanisms—the lack of qualified personnel, an expectation of decreasing returns on investments in engineering based projects, or the offshoring of engineering activities–are likely to negatively affect the sustainability of the Norwegian oil cluster” (Sasson, 2011). Competing Clusters The Norwegian oil and gas supplier cluster faces competition from Houston, US; Rio de Janeiro, Brazil; and Aberdeen, Scotland, which shares the North Sea assets. Although the The oil & gas cluster in Norway 25 Norwegian supplier cluster is enjoying strong growth from internationalization, its strategic position as a technology driven innovator is threatened. Norway does not have the scale of Houston, which has almost 18 times as many firms (Capital IQ, 2012). The cluster size in Aberdeen, Scotland is roughly the same as Stavanger, Norway, but the two clusters have positioned themselves differently, and Aberdeen has better patenting output. Aberdeen is known for process innovations; there were 780 US patents from this cluster up to 2005, compared to only 412 Stavanger ­related US patents in the same time period (Hatakenaka, 2006). Rio de Janeiro may pose the biggest threat to the Norwegian supplier cluster. In Brazil, the government has put in place local supplier requirements similar to what Norway had in the 1970s. With these protectionist policies in place, Rio’s 64% state ­ owned Petrobras has managed to increase the percentage of Brazilian suppliers hired to work on the company’s oil and gas projects from 53% in 2003 to 77.34% in 2011 (Petrobras, 2011). While Norway’s production has peaked, Brazil’s production is doubling to 6 million barrels per day by 2020. The...
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