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This study explores the magnitude and impact of external and internal innovation investments on the innovation performance of Australian businesses. Descriptive results estimate external innovation investment at $3.5 to $4 billion for all innovative Australian businesses in 2013-14, and suggest that external investments are greater than internal investments for the majority of firms. Ordered logit regression results show that disembodied external innovation investments are positively and significantly correlated with a higher frequency of innovation in marketing methods and operational, organisational and managerial processes. Investment in internal development activities is positively correlated with both innovation frequency and sales from innovative products. This implies that despite the increasing importance of externally oriented open innovation (OI) strategies, parallel investments in internal capabilities remains essential for innovation success. [ABSTRACT FROM AUTHOR]

The study highlights the role of performance management in facilitating innovative work behaviour in public sector services. Empirical data are drawn from respondents in a large public sector organisation in Australia. Innovation in the public sector services is constrained by financial and human resources support, and the implementation resulting from innovative work behaviour poses a challenge. The findings indicate that formal performance management systems are not necessarily effective in facilitating innovative work behaviour. Informal constructive feedback is viewed as being more critical in fostering innovative work behaviour in public sector services. Such informal feedback facilitates workplace learning and practice-based innovation as well as promotes innovative work behaviour. This study takes an important step into further research on human resource management practices for innovative work behaviour in order to facilitate public sector innovation. [ABSTRACT FROM AUTHOR]