Oil sector and technological development: Effects of the mandatory research and development (R&D) investment clause on oil companies in Brazil

The commodity boom at the turn of the millennium spawned growing interest in development strategies based on natural resources. The Brazilian government introduced a groundbreaking contractual clause to force oil companies to invest into research and development (R&D) 1% of gross revenues from large oilfields, with the aim of fostering technological development. To analyze the impacts of the R&D clause, we conducted 73 in-depth interviews with key informants from the oil sector. We also carried out a survey of 156 project coordinators. Our findings suggest that the R&D clause has strengthened the contribution to technological development by the national oil company, meanwhile involving new actors. The R&D clause has also boosted scientific research, technological capabilities, and innovation. However, it had a minor impact on fostering the relations between oil companies and service companies, and technology-based firms have played only a minor role.