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In-House Or Outsourcing Skills: How Best To Manage For Innovation?

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  • JUSTIN DORAN

    (Spatial and Regional Economics Research Centre, Department of Economics, Cork University Business School, University College Cork, Ireland)

  • GERALDINE RYAN

    (Department of Accounting and Finance, Cork University Business School, University College Cork, Ireland)

  • JANE BOURKE

    (Department of Economics, Cork University Business School, University College Cork, Ireland)

  • FRANK CROWLEY

    (Spatial and Regional Economics Research Centre, Cork University Business School, University College Cork, Ireland)

Abstract

Innovation is essential for driving business survival, development, and growth. Today, managers within firms continuously search for new ways to gain competitive advantage. In many cases, this comes from the effective use of intangible assets such as workplace skills and abilities. Despite this, little is known about what types of skills are required for innovation, whether these vary by innovation-type, or whether it matters if these skills are outsourced. This paper addresses these issues using data collected on eight skill types as part of the 2008–2010 Irish Community Innovation Survey. We find that there is substantial heterogeneity in the effectiveness of skills at generating different kinds of innovation. In addition, for some types of innovation, it is best to develop the skills in-house (e.g., Engineering skills for product innovation) while for others it is best to outsource the skills (e.g., Multimedia skills for process and organisational innovation).

Suggested Citation

  • Justin Doran & Geraldine Ryan & Jane Bourke & Frank Crowley, 2019. "In-House Or Outsourcing Skills: How Best To Manage For Innovation?," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 24(01), pages 1-25, February.
    • Handle: RePEc:wsi:ijimxx:v:24:y:2019:i:01:n:s1363919620500103
    DOI: 10.1142/S1363919620500103
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    2. Martin Falk & Eva Hagsten, 2021. "Innovation intensity and skills in firms across five European countries," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 11(3), pages 371-394, September.

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