This groundbreaking book provides new key insights and opens up an important research agenda. The book develops a new taxonomy of the different types of innovation found in public sector services, and investigates the key features and drivers of public sector entrepreneurship. The book contains new statistical studies and a set of six international case studies in health and social services. The research shows that public sector organisations are important innovators in their own right. Economic growth and social development depend on efficient public sector organisations that deliver high quality services, are effectively organised, and have excellent interactions with the private sector, NGOs and citizens. Public sector innovation is complex, invariably involving changes in services, organisational structures, and managerial practices. Essential to successful innovation are the policy entrepreneurs and service entrepreneurs who develop, organise and manage new innovations. This book provides key lessons for these public sector entrepreneurs. Innovation in Public Sector Services fills a fundamental gap; explaining the dynamics of innovation and entrepreneurship in public sector services and is of great importance for researchers, academics and students interested in innovation, entrepreneurship and strategy management. It provides a stimulating read for anyone working or interested in health and social services.