According to the World Bank review, National Oil Companies (NOCs) control approximately 90% of the world’s oil reserves and 75% of production (similar numbers apply to gas) and many major oil and gas infrastructure systems. However, NOCs fall behind many smaller companies in terms of innovation. The reason is the closed nature of their business, which constrains innovations. It has been suggested that this problem can be solved by the application of an “Open Innovation” paradigm. The concepts of Open Innovation suggest firms who would like to be more innovative to use internal as well as external sources for their idea generation. (Ibrahimov in Open innovation and application to petroleum industry. IFAC Papersonline, 2018). However, this is not easy to deploy due to these organizations’ traditions, values, and institutional culture, which act as innovation obstacles in those companies. Innovations should be “Open” to find better solutions but should be “Closed” to fit with the cultural requirements of NOCs. This contradiction needs to be solved quickly for the sake of innovation, which is the key to ensure environmental and societal benefits and to prevent further harm. This article stresses the importance of Open Innovation in the petrochemical industry and discusses the difficulties for the industry to embrace it, especially in light of the advances in intelligent robotic systems applications in the sector. The questions are: How should large NOCs adopt innovations and become more open to innovation so that the best intelligent automatic solutions are adopted in such contexts? Is there a theory of knowledge and innovation that can solve the contradictions between Closed versus Open Innovation? This paper posits that a solution to the contradictions surrounding innovations in NOCs could be found in Teorija rezheniya izobretatelskih zadach (TRIZ) (Theory of inventive problem solving), which has been used for decades to overcome contradictions and to develop inventive solutions, in a variety of similar sectors. In this paper, TRIZ theory has been suggested as a tool to deploy the “Open Innovation” paradigm to solve the above-mentioned contradictions, i.e., how to make things “Open” while keeping them “Closed” where necessary (or even required by regulations). Real-life examples from the oil industry, and recent applications from Azerbaijan specifically, are analyzed and interviews with the industry players used to test TRIZ theory as a tool for the Open Innovation paradigm in the oil sector. The paper sets out innovative solutions in intelligent robotic pipeline inspection systems, which operate in hazardous conditions unsuitable for humans, and which, for example, ensure that pipelines do not degrade to the extent, where they create environmental and societal damage. The problems, paradigms, and TRIZ praxis as applied in the oil sector examples given here offer important lessons for the global oil industry and other high hazard sectors globally; however, examples in the paper chosen from Azerbaijan and Caspian Region which is also the hometown of TRIZ.
