Governments around the world are under pressure to do more with less. Dispelling the conventional wisdom that government is the enemy of innovation, this book argues that the promise of innovation addressing the most compelling societal problems will only come to fruition if governments become full partners and participants in innovation. The authors provide a systematic overview, analysis, framework, research agenda, and strategic directions for the study of public sector innovation, examining drivers, sources, barriers, typologies, and outcomes of innovation along with ethics. They suggest that innovation in government requires a new approach to public sector strategy, organization, human resources, and culture. Featuring large data analyses and poignant case studies drawn from best practices across the globe, Demircioglu and Audretsch identify what works and what doesn't in transforming governments from the periphery to the very heart of the most profound innovations driving societal change and development.