Innovation can be a major source of productivity growth, cost savings and improvements in service quality, benefits which then also positively affect businesses and citizens who rely on an efficient and effective public sector. The ability of the public sector to innovate is therefore increasingly seen as a critical element of economy-wide innovation performance. The collection of contributions in this publication address a wide range of issues related to the promotion of innovation in the public sector as well as policy lessons learned in this area, drawing on the experiences of different countries. Part I of the publication discusses issues referring to this relatively new policy area of innovation. It draws a comparison between public and private sector innovation and explores the role of Information and Communication Technology (ICT) in public sector performance. Part II highlights some country cases of innovation including Governance e-Transfomation, Citizen Engagement, Climate policy implications, Public Private Partnerships etc.