Purpose: The purpose of this paper is to examine the impact of outsourcing dynamism on firm’s innovativeness.

Design/methodology/approach: The cited case concerns a small family manufacturing firm located in Sweden, producing electrostatic precipitators, and operating globally. An analysis of the relation between outsourcing as a strategy and development of core-activities was done to see the effect on innovativeness over time.

Findings: The outsourcing dynamism shows that a high level of outsourcing has a positive effect on firm´s Innovativeness. Focus on the core activities by outsourcing the non-core activities increase knowledge and skills, which in turn boost firm´s innovativeness.

Originality/value: An up to date picture on the positive effects of outsourcing on firm’s innovativeness.

Keywords: Core-competence, Core-activities, Innovation, Innovativeness, Innovative performance, Outsourcing, Outsourcing as a strategy.

Paper type: Scientific article.