This document provides an executive summary of the INSCO research project focusing on innovation in sourcing competencies. The research will involve case studies, development projects, and interviews to explore collaboration practices for sourcing innovative products and services. Specific areas of focus include management of innovation relationships, practices for indirect sourcing, and the use of demos and prototypes. The research will be conducted from 2011-2012 by a team from Aalto University and Oulu University working with industrial and international partners.