ABSTRACT
This chapter provides the theoretical underpinnings of innovation in public sector organisations, which include definitions and types of innovation; innovation and creativity; the evolution of innovation theory; innovation at four different organisational levels; innovation in the public sector versus the private sector; antecedents of innovation at different levels; and oversights in the innovation literature. Innovation has long been criticised for its failure to fulfil the expectations of higher efficiency and better service. Hence, this review is conducted to understand better how to effectively define innovation in public sector organisations, identify organisational barriers to innovation, leadership characteristics and organisational climate issues that spur innovation. Public sector organisations worldwide view the development of innovation as paramount and inevitable, due to global competition. Apparently, the literature informs that innovation has different notions and interpretations. According to Mumford, et al., innovation refers to the development and deployment of new processes, services and products.
