The extent of intensified competition among firms at the global environment places technological innovation in a strategic position to promote economic development and foster the national competitiveness. This is particularly true for Nigeria. This study investigated the petroleum innovation system using the indigenous marginal field operators in Nigeria. The nature of interactions of the oil firms with other stakeholders in the industry was examined by analysing data collected from 108 participants. Data were analysed using descriptive analysis, financial modelling and logit regression. Arising from the analysis, a technoeconomic policy framework was developed. The framework emphasised the benefits inherent in strengthening the interaction among the elements in the Nigerian petroleum innovation system and placed government at a strategic position in creating enabling environment for other stakeholders through policy and supports to fully enhance the contribution of marginal oil and gas field to economic growth